Remortgaging From Godiva Mortgages

Why Landlords Remortgage From Godiva Mortgages

Buy-to-let investors consider remortgaging away from Godiva for a number of practical reasons:

• SVR costs eating into rental profit — Godiva's standard variable rate can be around 7.5% to 8.5%, which on an interest-only BTL mortgage substantially reduces the net income from your rental property
• Tighter criteria than competitors — Coventry Building Society takes a conservative approach to lending, and Godiva's criteria may not accommodate HMOs, multi-unit blocks or larger portfolio landlords as flexibly as some specialist BTL lenders
• Better rates elsewhere — the BTL market is highly competitive, and other lenders may offer initial rates that undercut Godiva's product transfer options
• Portfolio growth — landlords adding to their portfolios may find that other lenders provide a more accommodating approach to higher property counts

Reviewing your mortgage arrangements regularly ensures your buy-to-let investments are financed at the lowest possible cost.

Godiva Mortgages BTL Rates and SVR

Godiva's initial fixed rate products are generally priced competitively, reflecting the financial strength of Coventry Building Society. However, the SVR that applies after your deal expires typically ranges from 7.5% to 8.5%, which is broadly in line with other mainstream lenders but far above what is available on a new fixed deal.

To illustrate the impact: a landlord with a £180,000 interest-only BTL mortgage paying Godiva's SVR at 8% would face monthly interest of £1,200. Switching to a new five-year fix at 4.75% would reduce that to £713 — a saving of £487 per month or nearly £5,850 per year.

Given the current pressure on landlord profitability from higher interest rates and reduced tax relief, securing the lowest possible rate on each property in your portfolio has never been more important.

How to Remortgage Your BTL From Godiva

Remortgaging from Godiva follows the standard buy-to-let process, with a few points specific to their intermediary model:

• Contact your broker — as Godiva operates exclusively through intermediaries, you will need a broker to explore both product transfer options from Godiva and external remortgage deals
• Verify your property's current value — an up-to-date valuation or estimate helps determine your loan-to-value ratio, which directly affects the rates available to you
• Confirm rental income — your broker will need evidence of rental income, usually in the form of a tenancy agreement or rental statement, to demonstrate that the property meets lender affordability requirements
• Compare product transfers against external deals — a Godiva product transfer avoids legal fees and valuation costs, but an external remortgage may offer a lower rate that more than offsets these expenses
• Proceed with your chosen option — whether staying with Godiva on a new deal or switching to a different lender, your broker will manage the application through to completion

Allow at least three months before your current deal ends to ensure everything is in place for a seamless transition.

Portfolio Considerations for Godiva BTL Borrowers

Coventry Building Society has traditionally taken a measured approach to portfolio lending, and this influences what Godiva can offer to landlords with multiple properties:

Property count limits — Godiva may impose restrictions on the total number of buy-to-let properties a borrower can hold. If your portfolio has grown beyond their thresholds, you may need to place additional properties with other lenders.

Property type restrictions — Godiva tends to favour standard residential buy-to-let properties. If you own HMOs, multi-unit freehold blocks or properties above commercial premises, other specialist BTL lenders may be more accommodating and offer suitable terms.

Balancing your lending — spreading your portfolio across multiple lenders reduces concentration risk and ensures you are not overly dependent on any single provider's criteria or pricing decisions. A broker experienced in portfolio BTL can help structure your lending for maximum efficiency and resilience.

Even if Godiva remains the right lender for some of your properties, remortgaging others to better-suited providers can improve your overall portfolio performance.

Why a Broker Helps When Remortgaging From Godiva

Since Godiva is only available through intermediaries, a broker is essential for both accessing their products and comparing them against alternatives. The value a broker adds extends well beyond simply placing an application.

An experienced BTL broker understands the nuances of different lenders' rental calculations, stress testing methodologies and portfolio assessment criteria. This knowledge is critical when your application needs to demonstrate that a property — or an entire portfolio — meets affordability requirements that vary significantly from one lender to another.

A broker also saves you considerable time. Rather than researching dozens of lenders individually, they can quickly narrow the field to the handful of providers offering the best combination of rate, criteria match and service for your specific circumstances. For busy landlords managing multiple properties, this efficiency is invaluable.