Let to Buy mortgages
As we grow more sophisticated in our borrowing habits lenders have been forced into approaching lending in a more forward thinking way. So now it is not uncommon to come across a let to buy mortgage. Although these are not main stream they could certainly be worth your consideration.
So what is a let to buy mortgage? Well it works by allowing you to put a tenant in your existing house and purchase your new main residence without your existing mortgage loan reducing your purchase ability on affordability grounds as long as it is deemed to be self funding.
The lender will often wish to gain an independent view on the possible rental income of your existing property. They will be keen to know that you have access to enough money to cope financially if your tenants fail to pay the rent. Typically a lender will require rental income of 125% -150% of the mortgage repayments of your rented property.
Here are a few things you might wish to consider.
Is the location good for tenants?
Does your existing mortgage term allow the property to be let?
Is the area you are wishing to let in oversubscribed with rental properties?
Can you deal with the complication of having two mortgages?
Are you willing to be a landlord and all that requires?
This is a very brief look at Let to Buy mortgages there are other aspects you will need to consider that are not covered here. So please get in touch with us so we can keep you up to date with all the elements of an Offset mortgage.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.
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