16 February 2023
Refinance mortgage to rent a property
Egle Kemezyte
Growth Marketer

James and Emilie were proud homeowners of cosy property. However, as their family grew, they realized their current home was no longer sufficient for their needs.

They decided it was time for them to purchase a bigger property. Besides, they want to keep their current home and rent it out, which would bring in extra income and provide them with a way to invest in their future.

In the Netherlands, homeowners have a wide variety of mortgage options. One popular option is the keep-to-let mortgageThis type of mortgage is perfect for homeowners who want to rent out their property.  As the first step, James and Emily need to refinance their residential mortgage to buy to let and then apply for a second mortgage.

Where to start?

First, James books a call with our mortgage specialists at Mister Mortgage to start the process. Our mortgage specialists ask a few questions to understand James and Emilies financial situation. James is a compliance manager, and Emily is an associate professor at the university. The combined income for both incomes is EUR 152.000. The home is worth EUR 400.000

  • The home is worth EUR 400.000

  • Current mortgage EUR 250.000

  • Current interest rate: 2%

  • Monthly payments: EUR 925

Mortgage proposal for Jamie and Emilie

During the next call, our mortgage specialist will provide possible scenarios on how to structure the mortgage:

  • New keep-to-let mortgage: EUR 254.499

  • Closing fees: EUR 4.499

  • New interest rate: 3,80 %

  • Monthly payments: EUR 904

To refinance their current mortgage, James and Emily must pay closing fees of EUR 4.499, which can be borrowed from the new lender. The interest rate for buy-to-let mortgages is higher than for residential mortgages.

Refinancing and applying for a new mortgage

When the couple gives the green light, the mortgage specialist, with James and Emily's help, collects documents and submits the mortgage application. In addition, the mortgage specialist starts a new application for a second property. James and Emily found a property value of EUR 500.000. They decided to go for a fixed interest rate for ten years at 4.01%.

Monthly payments: 

To finalize the deal, the couple must pay the following closing fees:

  • Transfer tax: 10.000 EUR

  • Real estate agent: 6.000 EUR

  • Mortgage advisory/brokerage: 2.999 EUR

  • Notary fee: 1.800 EUR

  • Valuation report: 850 EUR

Are you looking to refinance your residential mortgage to keep to let? Contact us to receive a personalized keep-to-let offer.

Should you refinance your mortgage?

Schedule a free call with our mortgage specialists

Meet the team
Sezer Yilmaz
Egle Kemezyte
Growth Marketer
Robin Uijtdehaage
Client Director & Financial Specialist
Lisa Grondsma
Financial Specialist