Remortgaging a rental
Remortgaging a rental means switching the mortgage on a rental property to a new deal or lender, usually to cut costs, release equity, or change the loan type, for example, an interest only mortgage. It’s a financial decision, but it is also tightly linked to how your tenancy is performing and how well the property is maintained.
Most lenders underwrite buy-to-let using an interest coverage ratio (ICR) stress test. They compare expected rent against stressed mortgage interest to see whether the property and, for larger landlords, your portfolio, can withstand higher rates. The PRA’s buy-to-let underwriting statement sets expectations for how lenders assess affordability and defines ICR as the ratio of expected rental income to stressed interest payments.
If you have four or more distinct mortgaged buy-to-let properties, you’ll usually be treated as a portfolio landlord, meaning the lender looks at the whole portfolio rather than only the subject property. Expect to provide a property schedule, including addresses, values, rents, mortgages, evidence of income, and details of how you manage repairs, housing disputes and rent arrears.
Building issues can also block a remortgage. If you own a leasehold flat, the valuer or lender may ask for EWS1 forms where external wall risk is a concern. Government data shows a minority of flat valuations still require EWS evidence, but it remains a live friction point for refinancing.
The Renters’ Rights Act changes the risk backdrop in England. Section 21 notice is abolished, most tenancies move to an open-ended periodic tenancy, and possession relies on Section 8 notice and specific grounds for possession. That matters to lenders and you because arrears or problem tenancies may take longer to resolve, so stronger cash buffers and cleaner records become more important during underwriting.
Also see our landlord blog articles, including:
Also see our free landlord calculators:
