A Let-to-Buy mortgage first came to fruition in the early 1990's but has never been a popular option as a lot of people get confused between the phrases Let-to-Buy and Buy-to-Let.
A Let-to-Buy mortgage means that you can buy and move into a new home whilst keeping your existing home and renting it. This means that you can have 2 residential mortgages as the proposed rental income from your existing home is used to pay your existing mortgage.
If a lender is prepared to offer a Let-to-Buy mortgage they will usually exclude your current mortgage(as long as the rental income covers the mortgage payments) and offer a mortgage for a new property based on normal income multiples. This type of mortgage differs from a Buy-to-Let as the interest rate for this will be slightly lower.
If you are finding it difficult to sell your home, this may be the option for you. To make sure your house is 'lettable' it would be a good idea to ask a local letting agent to give you an opinion and also carry out any repairs that might put off potential tenants.
As whole of market mortgage brokers we can offer you exclusive and semi-exclusive Let to Buy mortgages from specialist lenders not available on the high street. We also have access to the whole market which is an important factor when finding the right buy to let mortgage for you.
Because of our established relationships with lenders we are often able to offer our customers preferential processing treatment which helps you to get your Let to Buy mortgages application processed more quickly and efficiently than usual.
There are so many different formulas used by the different Lenders to calculate what you can borrow based on your existing property being Let out. For this reason we recommend you speak to us to establish how much you may be able to borrow before looking for a new home.
To discuss your requirements call us on 0800 3893796 or 01483 419288. Alternatively request a call from us by completing our contact form.
NB Please note that if your home is 'let' for more than 3 years you are legible for Capital Gains Tax. This is payable on the difference in the value of your home when it became a second home and the price at which it is eventually sold. A good accountant would be able to tell you how to minimise the amount of Capital Gains Tax.
What do you want your conveyancers to be able to offer you?
Home Buyer's Protection is designed to protect you when buying a house by covering your expenses should the purchase not proceed for various reasons.