At NetRent, we often say that the biggest cost to landlords isn’t repairs, voids, or even tax — it’s staying on the wrong mortgage deal for too long.
To prove the point, here’s a real-life case study of how one landlord saved £12,000 over five years by remortgaging at the right time.
Meet Sarah: A Buy-to-Let Landlord from Manchester
Sarah purchased a 3-bedroom buy-to-let property in Manchester in 2018. She initially took out a 2-year fixed-rate mortgage at 2.19% interest with a 75% loan-to-value ratio.
Like many landlords, once her fixed term ended in 2020, Sarah rolled onto her lender’s Standard Variable Rate (SVR), thinking she’d wait to see if interest rates would fall.
Fast forward to 2024, and Sarah had been on the SVR for nearly three years — paying far more than she needed to.
The Problem
- Loan balance: £200,000
- Lender’s SVR: 6.25%
- Monthly mortgage payments: £1,041
Compared to the deals available in the market, Sarah was overpaying by hundreds each month.
When she approached NetRent, she was frustrated:
“I didn’t realise how much extra I’d been paying. I thought waiting for rates to fall was the safe option — but I’ve probably wasted thousands.”
The Solution
After reviewing Sarah’s portfolio, income, and rental coverage, our team recommended switching to a 5-year fixed-rate mortgage at 4.85% with a new lender.
This product offered:
- Stability for five years (ideal for budgeting).
- A lower stress-test rate, improving affordability.
- A significant reduction in monthly payments.
The Results
Here’s how the numbers stacked up:
- Before Remortgage (SVR at 6.25%)
- £200,000 loan
- £1,041 per month
- After Remortgage (5-year fix at 4.85%)
- £200,000 loan
- £808 per month
Monthly saving: £233
Annual saving: £2,796
5-year saving: £13,980
Even after accounting for product fees, Sarah was more than £12,000 better off.
Sarah’s Feedback
Sarah told us:
“I wish I’d acted sooner. I’ve now locked in a lower rate, my tenants are happy, and I’ve freed up over £200 a month. I’ll be using the savings to build a deposit for my next property. NetRent made the whole process simple and stress-free.”
Lessons for Other Landlords
Sarah’s story highlights three important lessons:
- Don’t wait on an SVR. Standard variable rates are almost always higher than market deals.
- Fixed rates provide security. A 5-year fix not only reduced costs but also made affordability easier.
- Specialist advice pays off. Many landlords assume remortgaging is complicated — but with the right broker, it’s straightforward and profitable.
Could You Save Too?
If your mortgage deal has ended, or is due to end soon, you could be in the same situation as Sarah. By remortgaging, you may:
- Cut your monthly costs
- Free up cash flow for reinvestment
- Release equity to expand your portfolio
- Gain peace of mind with fixed repayments
Speak to NetRent Today
Don’t wait and risk wasting thousands on the wrong mortgage. Let us show you how much you could save by remortgaging.