Let To Buy Mortgages
Let To Buy is another mortgage product available to customers which offers an alternative to the popular “Buy To Let” option.
A let to buy mortgage allows you to borrow money to buy a new home to move into, while your existing home is let out to tenants.
The new mortgage lender will calculate the maximum that they are prepared to lend you and not take your existing mortgage into consideration as a commitment as long as the rent covers the existing mortgage payment.
A deposit maybe required for the new mortgage however this maybe released from the existing property by remortgaging or a secured loan.
Personal Touch Mortgages can provide tailored mortgage advice for your individual requirements. Speak to one of our mortgage advisors today.
Let to Buy Mortgages have various Pros and Cons
Pros
- You can rent out your existing property in order to buy another home locally or in a completely different location within the UK
- It’s a really good way to retain your property if you’re relocating as a result of a job or change of circumstance for a period of time and have a need to purchase a new property whilst you’re away
- It’s a way to retain your original property as an investment and benefit from the mortgage being paid by the tenants
- It can be of real benefit when used to break the buyers and sellers chain if you are having trouble selling your property or if you have little or no equity and would rather wait before selling
- Let To Buy can be a good way to start building a property portfolio that you could benefit from in the future. It could act like a form of long term pension provision, once the mortgage on the property is paid off
The rules are different from Buy To Let as you may be able to borrow a higher proportion of the property value. This means you may need a smaller deposit or if you have plenty of equity in your current property possibly no deposit at all.
Cons
- It is a requirement by the new mortgage lender that you ask your existing lender for permission to rent you current home out
- You must inform your building and contents insurer it is being let
- If your property is leasehold you will need to make sure that your lease has no restrictions on letting your property
We will help you with your solicitor, estate agent, surveyor, mortgage lender…….in short, we will be with you EVERY STEP OF THE WAY
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
We normally charge a fee for mortgage advice. The amount will depend on your circumstances. A typical fee would be £99 payable upon application and further £300 payable only on completion of mortgage.
Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority.
