Let to Buy Mortgages Explained
A Let to Buy mortgage is when you keep your current home to rent out and purchase a new one to live in. You will remortgage your existing home onto a Buy to Let mortgage. Then purchase a second property with a new residential mortgage.
There are many reasons that you might consider a Let to Buy mortgage. Here are some of the most common reasons our clients tell us about:
- You want to purchase a home with your partner, but keep your home as security for the future
- You want to move to a new house but keep your property as an investment for the future
- You’ve found a new home to buy but haven’t been able to sell your current home
- You’re relocating with work but want the option of moving back home in the future
- You live in an area with high rental yields and want to keep your home to benefit from this
This will mean you will have two mortgages: a Buy to Let Mortgage on your current home and a Residential Mortgage on your new home.
It might be that both mortgages are with the same lender or they might be with different lenders.
Generally our clients release additional equity from their property by increasing the mortgage loan when they remortgage. You can then use this as a deposit on the new home together with any savings.
Your lender(s) will want to know that your rental income will cover your Buy to Let repayments. And that you can afford to pay the new residential mortgage.
Our team of experienced mortgage advisers will take the time to walk you through this entire process. We’ll do the calculations to understand how much extra equity you can release from your property and how much you can afford to borrow for your new residential property.
The process can sound quite complicated, but an experienced mortgage broker like Your Mortgage Expert will work hard to take away the stress. We will also manage the whole process to ensure that the two mortgage applications complete at the same time.
Contact us today for Let to Buy mortgage advice. You are more likely to have a successful outcome if you use an experienced mortgage broker like us.
YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Why Choose us?
Our experienced team is based in the heart of Salisbury, Wiltshire, but we can help you no matter where you live in the UK. If you want to find out more about us, visit our Meet the Team page.
We have:
- Over 80 years of experience in the mortgage and protection industry
- Access to specialist lenders and exclusive deals
- We have over 100 five-star reviews on Google
- Have helped hundreds of Buy to Let investors
How we work:
- Take time to get to know you and your intentions
- Personalised, hard working service
- Close relationships with specialist lenders
- Detailed research to ensure you save money
- Take care of the paperwork to minimise stress
- The experience to get a good result for you
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Email Dan HarrisDan Harris - Mortgage Adviser
Dan started working in the mortgage industry in 2004. Since then, he has helped lots of Buy to Let investors. Dan has great attention to detail and will do the hard work to ensure you get the best recommendation. -
Email Dan AllenDan Allen - Mortgage Adviser
Dan Allen has worked with mortgages for over 10 years. He takes time to understand different lender criteria. His wealth of knowledge means he will know which lenders will work for you situation.