Let to Buy Mortgages

A let to buy mortgage might be appropriate if you decide to let your current home and then buy another property to use as your home.

There are often TWO mortgages required:

• A buy to let remortgage of your current home and…
• A home purchase mortgage as an owner occupier (often referred to as let to buy)

You should consider that you will need a deposit for your new home. You may be able to raise the deposit at the same time as you remortgage your current home

The buy to let remortgage will require that the rental income from letting out your home will cover your existing mortgage by a suitable margin. We can advise what that rent will need to be

If you do not arrange a let to buy mortgage then your earned income will need to cover both mortgages.

We can help arrange both mortgages – please fill in your details in the Enquiry form

One option is to seek the permission of your current mortgage lender to let the property. This permission may be refused or could be accepted subject to an increase in interest rates.

If you seek out permission to let then it is unlikely that your current lender will lend you any more money at the same time. So any deposit for the ongoing purchase will need to come from your savings

You can remortgage your current property onto a buy to let mortgage. There may be mortgages available which will enable you to remortgage free of charge. You can also release equity at the same time as you remortgage. This money could be used as a deposit against the new property.

You may be able to remortgage up to 75% of value.

Mortgage lenders may require that the rent covers the mortgage payments by a certain percentage. This cover will vary with different lenders.

Some lenders will require evidence that the rental income will be sufficient. This evidence might be a copy of the tenancy agreement or a letter or statement from a letting agent giving a rental income assessment.

Mortgage lenders are likely to require proof that the mortgage against the let property is a buy to let mortgage or that you have the lenders permission to let.

Please contact us to discuss let to buy