Thinking of moving, but want to keep your existing property & benefit from the rental income? Struggling to sell your property, but need the money to complete your next property purchase?
A Let to Buy mortgage could help you
A Let to buy is different to a “Buy-to-Let” – which sounds confusing, right? Here’s the difference in simple terms:
Buy to let: A property bought by someone in order to rent it out, not to live in it, as an investment.
Let-to-Buy: Remortgaging your current residential property to an investment mortgage, in order to buy a new residential property. It’s very common to do this to release some money from your current house to use as your deposit for your next purchase.
The main difference is, you have lived in one & not the other.
A Let-to-Buy allows you to remortgage your existing residential property onto an investment mortgage which would allow you to keep your property & rent it out, while still being able to buy a new residential home. This is a very common move for first-time landlords to start their journey as a landlord.
You can raise funds to buy your new property by remortgaging your existing property up to 75% of the property’s value. The funds released would then be used as your deposit for your new residential home.
So effectively, if you plan to use a mortgage for your new home, you’d be applying for 2 mortgages. One let-to-buy remortgage & one new residential mortgage.
For your new home, there will be a minimum deposit required which differs from lender to lender.
For your let to buy, in most cases the amount you can borrow depends on how much you’ll be renting it out for, just like a buy to let.
The amount you can borrow for your new residential property will depend on your current income & expenditure, just like any standard residential purchase usually would. In most cases, your let to buy mortgage won’t be taken into consideration as an expense because the rental income should more than cover the monthly mortgage payments.
Once offered, Both the let-to-buy remortgage & the new residential purchase will have to complete at the same time.
"Dec went the extra mile and was on hand to answer any questions. Highly recommended" Paul. 02/12/2021
Your home may be repossessed if you do not keep up repayments on your mortgage
We handle both mortgages, so you don’t have to.
If you’d like to explore a Let-to-Buy, get in touch today!
Plura is a trading style of Plura Mortgage Advice Ltd which is an Appointed Representative of PRIMIS Mortgage Network which is a trading name of First Complete Limited. First Complete Limited is authorised and regulated by the Financial Conduct Authority. Registered Office 25-29 Sandy Way. Yeadon, Leeds, LS19 7EW. Registered in England & Wales with company number 14931418. We charge a fee for Mortgage Advice, usually £395, but this can vary depending on the service you are receiving. We’re also paid commission from the lender
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK
