Two or Five-year buy-to-let remortgage? Which one turns out to be cheaper for landlords?

If you are a landlord nearing the end term of your fixed mortgage deal, you may be expecting the monthly costs to increase and in many cases, they can double up too. So you may be wondering which is cheap – the two or five-year buy-to-let remortgage as the difference between these options may seem minimal to you and you may find it challenging to choose the most suitable option. If you need help finding the best buy-to-let mortgage deal, you can contact the leading letting agents in Brighton. They will guide you to choose the best buy-to-let remortgage so you can enjoy a smooth sail.

For a landlord, a buy-to-let mortgage means that you will get double benefits like getting income from your rental property and also a safe investment for the future. Plus most of the buy-to-let mortgages have to be paid on an interest-only basis and this allows the landlords to pay cheaper interest and they also need not pay back any capital. So if you are planning to get a remortgage in the upcoming months, know which is best for you, the two-year buy-to-let remortgage or the five-year buy-to-let remortgage.

Buy-to-let remortgaging – What do you have to know?

The buy-to-let remortgage gives you a great opportunity to choose a new mortgage deal when your current deal is going to expire soon. As the current rates are increasing, you can choose to remortgage by opting for a fixed rate mortgage for a specific period, and the most popular choices in this category are the two and five-year buy-to-let remortgage. By choosing one of these sweet deals, you can be sure of your repayments and you can save a lot of your money in the process.

Further, if you choose the fixed rate buy-to-let mortgage then the interest rate will be set for a specific period, say, two years, five years, or more. At a glance, the two-year and five-year fixed rates for remortgages will look the same but there are differences because what is going to happen to the interest rates will affect your decision if you are going for a remortgage.

  • Two-year buy-to-let fixed rates 

The two-year buy-to-let fixed-rate mortgages are provided by many mortgage lenders. This option is chosen by many landlords because the short period helps get competitive interest rates compared to five-year mortgage deals. Plus there is less chance of paying an early repayment charge.

You can choose the two-year buy-to-let remortgage if you prefer a more straightforward option as there is no capital raising and the interest rate is lower.

  • Five-year buy-to-let fixed rates 

The five-year fixed deals in the buy-to-let mortgage contain many great deals for the landlords so it is highly advantageous to choose the best deal from this option. So talk with an expert to know about suitable deals and share with them about your circumstances as the experts have wide market experience in buy-to-let mortgages, they will recommend you the best mortgage rates which will benefit you.

You can choose this option if you think the mortgage rates will continue to increase and also if you require long-term protection for five years.

Benefits of buy-to-let remortgage

  • Capital gain 

The value of the property can increase as well as decrease but for landlords, there are many proven cases in history where properties in a long term will certainly increase in value and it will be a huge capital benefit for them.

  • Good source of income 

The property during the ownership will provide you with rental income which can serve as an additional income for you. Plus your rental yield can also increase over time if there are good changes in the property market that affect the buy-to-let properties directly.

  • Demand for rental properties

The rental property market is strong now as many people are looking for rental properties for the sake of convenience and affordability. That is why you can get a buy-to-let mortgage for your property that you can rent to suitable tenants.

Contact the letting agents to know more

It can be challenging to understand the many nuances when it comes to choosing the best remortgage deal so if you want to get the best mortgage deal, you can find the reputed letting agent and talk with them. They will help you meet a leading mortgage expert to offer you beneficial advice and guidance about the best mortgage deals in the market right now which will help you choose the best buy-to-let remortgage.

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