Let To Buy Mortgages

What is a Let To Buy Mortgage?

Let to Buy Mortgage is an alternative to the popular "Buy To Let" option. This Let to Buy mortgage works by letting out your existing residence to tenants and allowing you to borrow money to buy a new home to move into. Perhaps this is one one of the more unique options available on the mortgage market. Let to Buy Mortgage is becoming increasingly popular with homeowners because it provides them an opportunity to rent an existing property and purchase another using, in whole or in part, the rentals.

Benefits of a Let to Buy Mortgage

  • You can rent out your existing property in order to buy another home locally or in a completely different location.

  • This is a good way to retain your property if you are relocating as a result of work assignment or change of circumstance for a period of time and you need to purchase a new property.

  • This enables you to retain your property as an investment and benefit from the mortgage being paid by the tenants.

  • This can be used to break the buyers and sellers chain if you are having difficulty selling your property or if you have little or no equity at all and would rather wait before selling.

  • Can also be your stepping stone to acquiring a series of properties that you could reap dividend on in the future, once the mortgage on the property is fully paid.

Let to Buy Mortgage Points to Consider

  • Secure a permission to engage in Let to Buy Mortgage. This is required by mortgage lenders.

  • Inform your building and contents insurer. Since there will be new occupants in your property, it is important to inform them.

  • If your property is on leasehold, make sure that the freeholder has no objections on letting your property.

  • It is also important to discuss with a qualified Mortgage Consultant to gain all the facts regarding Let to Buy Mortgage before proceeding.

  • To qualify for a Let to Buy Mortgage, the rental income achievable for your current property should not be less than 125% of the interest charged on the current mortgage.

  • The new property must be intended as your main residence.

  • A deposit of a minimum of 10% will be required for your new purchase.

The Best Time for A Let to Buy Mortgage

  • When your children have left home and managing your house is quite difficult for you that you need to look for smaller, more manageable property.

  • You are relocating another area because of work assignments, either long or short-term.

  • If you invite the idea of having a new home, but you do not want to part with your present property, then Let to Buy Mortgage could have considerable appeal.

  • You want to have additional income and you are in the position to invest.