Let-to-Buy is where a mortgage borrower keeps hold of their existing home and rents it out to tenants, and then buys a new home for themselves and their family to live in.
We’ve found the most popular reason is when you find your dream home but can’t wait for someone to buy the existing property or sell for the price that’s acceptable. Another common reason is that you prefer to keep your existing property as you believe it’s a sound long term investment and would prefer to sell it in the future.
With Let-to-Buy you effectively switch your existing residential mortgage to a Buy-to-Let deal, which is typically based on the expected rental income of the property, not on your income. This frees up your actual income, allowing you to take out a new residential mortgage on your new home.
Another key benefit to let to buy is providing you have sufficient equity in your property you may be able to release extra funds to help you raise an even bigger deposit for your new home.
Finally, it can even be possible to take out two residential mortgages, if your existing mortgage lender gives you ‘consent to let’ on your existing home, before you buy another. Not all lenders will allow this but it could mean you benefit from a lower interest rate than if you switch to a let-to-buy mortgage.
Our Buy to Let experts understand this market inside-out and explain in plain English so you know what all your options are without committing yourself to go ahead.
There are a number of ways to structure a let to buy mortgage and we’re passionate about finding the most competitive terms for you and your individual set of circumstances.
Register your Let to Buy mortgage enquiry today!