Let To Buy Mortgage

Let to buy mortgage solutions from the UK’s independent experts

When it comes to getting a let to buy mortgage, it can be a complicated process with potentially multiple transactions taking place. But rest assured we are not only experts when it comes to this, but we are also entirely independent and help people like you across throughout the UK.

Take a look at our Q&A section or other resources to help you.

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What is a Let to Buy Mortgage?

FAQ’s

 

If you like the idea of keeping your home, renting it out and still being able to buy, this is a great solution. You’ll probably have lots of questions! If you have one that isn’t answered here, please just ask or take a look at this blog.

Do you have a question about a let to buy mortgage?

If you have a let to buy mortgage question that is not covered here, please ask us.

What is a Let to Buy Mortgage?

Think of it as a buy to let in reverse, where you keep your home and rent it out.

 

Here is a let to buy mortgage scenario:

Imagine someone wants to move to a larger property. Rather than selling their home, they think it might be a good idea to keep it and rent it out.

They might like the idea of retaining their house and renting it. Or they might want to be able to buy, without having to wait for a buyer for their home (which may or may not take a long time).

The problem for most people is that they don’t have a deposit to put down on the new house they want to buy! If they do, then a different solution might be required, but let’s assume they don’t!

 

A Let to buy mortgage usually means getting two mortgages!

Essentially it means they’ll have two mortgages: A let to buy mortgage on the house they are keeping and renting. And a new residential mortgage on the new home.

With the let to buy mortgage, they will raise a little more to be able to use this as a deposit for the onward purchase. It is essential to be aware that both mortgages are interlinked! But only in that, both lenders will want to know what is happening with both properties, the mortgage amounts and the potential rent the property will achieve.

In a nutshell, both mortgages need managing very carefully. Getting a let to buy mortgage, is a complex scenario and its vital to work with experienced independent mortgage brokers who have experience in this.

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How does a let to buy mortgage work?

A let to buy mortgage is used as a way to keep your existing home and turn it into a renal property which you keep. The mortgage enables you to raise enough of a deposit, so you can use this to help buy a new home.

 

Advantages of a let to buy mortgage:

The advantage of this type of mortgage is that enables you to keep your existing assets, avoids you having to sell inorder to move, and can enable you to move much quicker.

When you are doing this, the likelihhod is that you will also need a new residential mortgage on the property you are moving into. You have raised the deposit from your existing property (by way of a let to buy mortgage) and you’ll then need to get a resiednital one.

 

A let to buy mortgage is complex and easy to get wrong!

Because multiple transactions are usaully happening simultaneously, both transactions are linked, even when you are using completely different lenders. So it is critical that both lenders are happy with the overall scenario and this does bring in an extra element of complexity.

If you are considering doing this, then it is always advisable to seek professional independent mortgage advice from an experienced broker who has experience of dealing with these complex sceanrios.

If you would like to discuss your own sceanrio, please feel free to get in touch.

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What is the difference between a let to buy and buy to let mortgage?

The difference between a let to buy mortgage and a buy to let is the way you get to the endpoint, which is a rental property. And it’s only really relevant when you are arranging a mortgage.

 

A let to buy mortgage starts with your home!

A let to buy mortgage starts with your home, which you intend to turn into a rental property. The let to buy mortgage is (usually) used to raise the deposit for your new home.

In other words, you are remortgaging to borrow a bit more.

A buy to let mortgage, on the other hand, is for a property which is either currently being rented (buy to let remortgage). Or if you are buying, you intend to let it out.

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How much rent will I get for my home?

Establishing how much rent your property will get is a critical first step. A great website to get a guide of this is Property Insights which enables you to pop your postcode in, find your property and it will give you a guide of the rental figure. It is critical you have an idea of how much rent you can get, as this will be the key to deciding how big your mortgage can be.

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Let To Buy Repayment Calculator

 

Let To Buy Mortgage Guides

Should You Get A Fixed Rate Mortgage?

How does a let to buy mortgage work?

How a let to buy mortgage will help you move

Service that’s about smiles not sales

We may be mortgage brokers, but we’re not a bunch of bankers! We are independent which means we only work for you. Our team are incentivised not on sales, but providing the best service for you.

FIND OUT MORE ABOUT US

 

Our Success Rates

(Third quarter 2019)

%

Research

  • We assess
  • You instruct us
  • We research
  • We find the best deal for you

%

Agreement In Principle

  • You agree to the deal
  • We submit the first stage of your application
  • You get an agreement in principle

%

Mortgage Offer

  • We submit the second stage of your application
  • We present your application in the best possible manner
  • They assess your situation
  • We support you throughout the process
  • They assess your property
  • You receive your mortgage offer

%

Completion

  • Technically our job is done but we also like to help
  • We liaise with solicitors and estate agents
  • We keep you updated
  • You achieve your goals

Talk to the experts

Call us on (01237) 472321

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