Let To Buy Mortgages

Complex let to buy mortgage solutions that we’re experts in

When it comes to let to buy mortgages, it can be a complex process and you want an honest mortgage broker with no surprises.

So we’ll always tell you the things you really need to know up front.

Common Let to Buy Mortgage Questions

A Let to Buy Mortgage can be a comple process and if you are planning to keep, rent your home out, and raise a mortgage for an onward purchase, you’ll probably have lots of questions and lots to consider. If you have a question that isn’t answered here, please just ask.

Do you have a question about a let to buy mortgage?
If you have a question about a let to buy mortgage that is not covered here, please contact us.
What is a Let to Buy Mortgage?
A let to buy mortgage is easiest explained by discribing the scenario you will need one:

Imgaine you live in your home now, but suddenly you want to move to a larger property.

Rather than selling your home you think it might be a good idea to keep it and rent it out.

Remember this can be a great solution for a market which takes a long time to sell, where you want to purchase quickly, where you don’t want to be stuck in a chain or where you want to keep hold of your home for property investing purposes.

The problem you face by doing this, is you probably don’t have a deposit to put down on the new house you want to move into! If you do, then a different solution might be required, but lets assume you don’t for now.

Essentially it means you’ll have two mortgages; one on your (soon to be) rental and a new one on the new home.

The solution is to get a let to buy mortgage on your home and borrow a bit more, which then acts as the deposit for your purchase.

Now the important thing to manage is also the onward purchase, as the lender for your new home will want to know everything about your let to buy mortgage.

In other words both mortgages are very closely linked and intertwinded. In a nutshell, both mortgages have to be very carefully managed.

A let to buy is a complex scenario and its vital to work with experienced mortgage brokers who are used to these scenarios.

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 let to buy mortgage enables you to raise enough of a deposit, so you can use this to help buy a new home.

The advantage of a let to buy 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.

Becuase 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.

What is the<br /> difference between a let to buy and buy to let mortgage?

The difference between a let to buy and a buy to let mortgage, is the way you get to the end point, which is you’ll have a buy to let property. 

The difference is only really relevant when you are arranging a mortgage and the way this is structured.

A let to buy mortgage is usually used to rasie the deposit on your home (which you will rent out) and when you move out you will be moving into a new home, which you might need a new residential mortgage for. 

A buy to let mortgage on the other hand is a property which is currently being rented or will be rented if you are looking to buy, but which is not your home.

Let To Buy Repayment Calculator

Let To Buy Guides

Why Is It Better To Put Down A Bigger Deposit?

How does a let to buy mortgage work?

How a let to buy mortgage will help you buy a new home?

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.

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Our Success Rates

( First quarter 2018 )

%

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 Let To Buy mortgage experts

Call us on (01237) 472321

or enquire now

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