Understanding your choices could save you thousands — and shape your investment strategy.
Remortgaging is one of the most powerful financial tools a landlord has. Whether your goal is to reduce monthly costs, release equity, or future-proof your portfolio, the mortgage product you choose can make a huge difference to your returns.
But with terms like fixed, tracker, and discount variable flying around, it’s not always easy to know which one best fits your investment goals.
At NetRent, we help landlords make informed remortgage decisions that align with both short-term savings and long-term strategy. Here’s a full breakdown of your remortgage options — explained clearly and with real-world landlord context.
1. Fixed-Rate Mortgages
What They Are
A fixed-rate mortgage locks your interest rate for a set period (usually 2, 3, or 5 years). Your monthly payments remain exactly the same, no matter what happens to the Bank of England base rate.
Why Landlords Choose Fixed Rates
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Predictability: You’ll know your exact payments each month — ideal for budgeting and portfolio planning.
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Protection: If interest rates rise, your costs stay fixed.
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Stability: Perfect for landlords who prioritise steady, reliable returns.
Things to Watch Out For
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Early Repayment Charges (ERCs): If you repay or remortgage early, you could face fees.
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Less Flexibility: You can’t easily switch deals mid-term.
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Missed Rate Drops: If the base rate falls, your payments don’t change.
✅ Best for:
Landlords who value certainty and want to plan confidently over several years.
2. Tracker Mortgages
What They Are
A tracker mortgage moves in line with the Bank of England base rate. Your rate is usually expressed as “Base Rate + X%.”
For example, if the base rate is 5.25% and your tracker is +1.25%, your total rate would be 6.5%. If the base rate drops to 4.75%, your new rate becomes 6.0%.
Why Landlords Choose Trackers
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Flexibility: You can benefit immediately from falling interest rates.
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Lower Early Fees: Some trackers have no early repayment charges, giving you freedom to switch later.
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Short-Term Advantage: Ideal if you expect rates to decrease in the near future.
Things to Watch Out For
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Rising Rates: If the base rate increases, so will your payments.
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Budget Uncertainty: You’ll need to manage fluctuating costs.
✅ Best for:
Experienced landlords confident in managing variable payments or planning short-term remortgages during rate drops.
3. Discount Variable Mortgages
What They Are
A discount variable mortgage gives you a discount off the lender’s Standard Variable Rate (SVR) for a set period — for example, “SVR minus 1%.”
This means your rate can move up or down whenever the lender adjusts its SVR, not just when the Bank of England base rate changes.
Why Landlords Choose Discount Variable Deals
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Often Cheaper Initially: Introductory discounts can make these attractive short-term.
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Flexible Exit Options: Some have minimal early repayment fees.
Things to Watch Out For
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Unpredictability: Your rate depends entirely on the lender’s SVR.
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Potential Spikes: If the lender raises its SVR, your costs can rise quickly.
✅ Best for:
Landlords looking for short-term flexibility and confident in tracking market changes closely.
4. Standard Variable Rate (SVR) Mortgages
What They Are
The Standard Variable Rate is the lender’s default rate once your initial deal expires. It’s usually the most expensive and least predictable type of mortgage.
Why Some Landlords End Up on SVRs
Many landlords forget to review their deals when fixed terms end. This automatically moves them onto the SVR, often several percentage points higher than market rates.
Why You Should Avoid It
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Higher Costs: SVRs can be 2–4% above typical fixed or tracker deals.
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No Certainty: Lenders can change them anytime.
✅ Best for:
Nobody — it’s a temporary stopgap at best. Smart landlords remortgage before reaching SVR.
5. Interest-Only vs. Repayment Options
When remortgaging, you’ll also choose how to repay your loan:
Interest-Only
You pay only the interest each month, keeping repayments low. The loan balance remains unchanged, but you can plan to repay via sale, refinancing, or portfolio restructuring.
✅ Ideal for: Professional landlords focused on cash flow and growth.
Repayment
You pay both interest and capital, gradually reducing the loan balance over time.
✅ Ideal for: Landlords focused on long-term equity building and risk reduction.
6. Hybrid and Specialist Options
Some landlords benefit from tailored products designed for specific goals or property types:
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Green Mortgages: Offer lower rates for energy-efficient homes (EPC A–C).
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Portfolio Mortgages: Allow multiple properties under one facility.
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Limited Company Mortgages: Structured for corporate ownership.
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Flexible or Offset Mortgages: Let you link savings to reduce interest payments.
These products are often available only through specialist brokers, not high street lenders.
7. How to Choose the Right Option
When selecting your remortgage, consider:
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Your investment horizon: Do you need short-term flexibility or long-term certainty?
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Rate outlook: Are rates stable or falling? (A tracker may make sense.)
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Your tax position: Company vs. personal ownership can affect lender choice.
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Your cash flow strategy: Interest-only can maximise liquidity; repayment builds security.
At NetRent, we assess your entire portfolio before recommending a product — ensuring your mortgage supports your financial goals, not just your next purchase.
Case Study: Balancing Fixed and Tracker Mortgages
Example:
Mark, a portfolio landlord, wanted to refinance two properties in 2025.
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Property A: Remortgaged on a 5-year fixed deal to lock in stability for his high-yield student let.
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Property B: Chose a tracker deal for his city flat, anticipating rate reductions in 2026.
By mixing products strategically, Mark reduced his exposure to market volatility while keeping the flexibility to capitalise on falling rates.
That’s the power of working with a specialist broker who understands both your short-term and long-term goals.
Final Thoughts
Remortgaging isn’t one-size-fits-all. The right product depends on your priorities — stability, flexibility, or growth. Understanding how each mortgage type works helps you make confident, informed decisions that strengthen your portfolio over time.
At NetRent, we work with landlords to find the perfect balance — helping you secure competitive rates, release equity, and keep your portfolio performing at its best.
📞 Telephone: 01352 721300
📧 Email: mortgages@netrent.co.uk