The BTL remortgage timeline
- Month -6: Review portfolio, gather rental statements, check current property values.
- Month -5: Get rental valuation letter from letting agent (lender needs current market rent).
- Month -4: Apply for new product. Rate locked from offer.
- Month -2: Valuation, underwriting, offer.
- Month 0: Complete on the day existing fix ends — avoid even one month on SVR.
The 2026 BTL rate landscape
- 75% LTV 5-year fix (personal name): 5.30%–5.80%
- 75% LTV 5-year fix (Limited Co SPV): 5.50%–6.30%
- 75% LTV 2-year fix: 5.50%–6.00%
- 75% LTV tracker (base + 1.0%): 5.00%
- HMO/holiday let: add 0.40%–1.00%.
The ICR refinance gap explained
Worked example: £200,000 BTL, £150,000 mortgage taken in 2021 at 2.5%. Rent £900/month.
- 2021 ICR test (5.5% stress, 145%): required rent = £150k × 5.5% ÷ 12 × 145% = £997. Just passed (or lender accepted a top-slice).
- 2026 ICR test (7% stress, 145%): required rent = £150k × 7% ÷ 12 × 145% = £1,269. Current rent of £900 = £369 short.
- Max loan supportable at £900 rent: £900 × 12 ÷ 7% ÷ 1.45 = £106,400.
- Landlord must inject £43,600 capital, raise the rent, or move to a 5-year fix at lower stress (5.5%) where max loan rises to £135,400.
Capital raising on BTL remortgage
If your property has appreciated and rent supports a larger loan, you can release equity. Lender will want:
- Purpose declaration (next BTL deposit, home improvements, business use).
- Most BTL lenders cap capital-raise at 75% LTV; some specialists 80%.
- Property valuation by lender's surveyor.
- Latest mortgage statement on existing loan.
Product transfer vs full remortgage
- Product transfer: stay with current lender, new rate selected from their product range. No re-affordability, no valuation, no legal work. Fast (often 2 weeks). Best when criteria are tight.
- Full remortgage: new lender, fresh application. Best when you want a sharper rate, capital raise, or a 5-year stress test instead of 2-year.
Personal name to Ltd Co at remortgage
Some landlords use remortgage timing to transfer property into an SPV. Tax consequences:
- CGT triggered on the personal sale to the company at market value.
- SDLT triggered on the company purchase (including 5% surcharge).
- Incorporation Relief may defer CGT if you meet strict criteria (must be a 'business' for tax purposes).
Get accountant advice before incorporating — the costs often outweigh the tax saving for small portfolios.
Pros
- Multiple specialist BTL lenders compete on remortgage business.
- Capital raising opens portfolio growth opportunities.
- 5-year fixes give lower stress rates and easier ICR passes.
- Product transfers are fast and avoid re-affordability checks.
- Limited company restructure can improve after-tax returns.
Cons
- ICR refinance gap is a real issue for many 2021-era landlords.
- Rates 1.5%–2% above original 2019–2021 fixes.
- Arrangement fees 1.5%–3% on BTL products.
- Incorporation triggers CGT and SDLT — usually expensive.
- Falling onto SVR even briefly costs hundreds in interest.