Retirees are using remortgages to develop buy to let property
Remortgages are being used to help retired or close to retiring home-owners fund buy to let renovation projects within their own home. As fewer borrowers are able to get large mortgages from lenders, retirees wanting to downsize are finding themselves stuck in the family home. Some are remortgaging to fund projects to divide up their home to develop buy to let property.
Remortgages allow retiree home-owners to make renovations to downsize one area of their home to create a smaller more manageable living space, while developing the other area to create a new buy to let property. Renovation to create a buy to let property can bring in considerable income, which can cover the remortgage payment and help the home-owner’s retirement fund. According to many buy to let reports, the buy to let market is currently very strong with rental fees at an all time high.
The decision to remortgage to cover the cost of developing a buy to let rental property should not be taken lightly though as there are many regulations to meet. However, for a home-owner wanting to remain in their home but needing to downsize, it is a good option.
Remortgages changed slightly at the beginning of the new year as lenders became more cautious which led to many pulling their cheapest remortgage deals. Despite this however, there are still cheap remortgage deals to be had and home-owners should not have to look long to find a good deal.
