Let to Buy

Many people now choose to let their existing property rather than sell when they move into a new home.

The new mortgage lender will not necessarily take your existing mortgage into consideration as a commitment as long as the rent covers the existing mortgage payment.

A deposit maybe required for the new mortgage however this maybe released from the existing property by remortgaging or a secured loan.

Pros
• You can rent out your existing property in order to buy another home locally or in a completely different location within the UK

• Let to Buy is a really good way to retain your property if you're relocating as a result of a job or change of circumstance for a period of time and have a need to purchase a new property whilst you're away

• Let to Buy is a way to retain your original property as an investment and benefit from the mortgage being paid by the tenants

• Let to Buy can be of real benefit when used to break the buyers and sellers chain if you are having trouble selling your property or if you have little or no equity and would rather wait before selling

• Let To Buy can be a start to building a property portfolio that you could benefit form in the future, acting like a form of long term pension provision, once the mortgage on the property is paid off

• The rules are different from Buy To Let as you may be able to borrow a higher proportion of the property value, which means you may need a smaller deposit or if you have plenty of equity in your current property possibly no deposit is required at all.

Cons
• It is a requirement by the new mortgage lender that you ask for your exiting mortgage lender to give permission to Let To Buy

• You must inform your building and contents insurer

• If your property is leasehold you will need to make sure that your lease has no restrictions on the letting of your property

Why not take a look at our remortgaging pages or our large loans pages. In addition you can find out about our market leading Buy to Let mortgages, commercial mortgages and property development finance available online today!