LET TO BUY
Let your current property to buy your next home
LET TO BUY
Let your current property to buy your next home
Let your current property to buy your next home
It you are considering becoming a landlord at the same time as buying your next home it is a challenge to know where to start… you will have questions and will need to gather a lot of information to work out the risks, the costs involved and to ascertain if your monthly payments will be within a budget you are comfortable with.
To find out if it is possible to do this, it is best to chat over your objectives with an existing landlord and mortgage expert to allow you to make an informed decision as to whether it is best to sell and buy OR let to buy.
Chat over your objectives with an Expert Mortgage Adviser now on
01273 736536
Chat over your objectives with an Expert Mortgage Adviser now on
01273 736536
4 simple steps to let your home to buy another
Step 1
Book a time to chat over your objectives and circumstances with a mortgage broker, who is a buy to let investor.
Step 2
Let your personal mortgage broker save you time by working out all the costs, researching the market and giving you the confidence to rent your home and buy another.
Step 3
When you are happy with the advice and have found the right property to purchase, your mortgage broker will apply online for the best mortgage products for you.
Step 4
Your dedicated relationship manager will see you all the way through to getting your door keys, keeping you well informed along the way.
Get the advice you need, speak with an independent expert today!
What you need to know…
What is a let to buy mortgage?
It is a loan secured against your current home that allows you to rent it out and also allows you to potentially raise a deposit to purchase a new home. Let to buy mortgage criteria is similar to buy to let criteria.
The main difference between a residential mortgage and a let to buy mortgage is that the amount you can borrow is assessed mainly using the rental income from the property being mortgaged rather than your own income. This allows your own income to be used, and to service a mortgage on, the onward property purchase.
How much equity do I need to leave in my home?
Most lenders will consider lending up to 75% of the property value therefore the other 25% equity remains in the property. The actual equity amount that will be required to be left in the property is frequently dictated by the expected rental income of your current property.
Most of our advisers have been landlords for many years, they have the knowledge to potentially allow you to help secure your financial future with owning a second property. Chatting with an existing landlord and mortgage broker will be beneficial for you to know how much you will need for the deposit and other costs.
Will the ‘Let to Buy’ mortgage affect the amount I can borrow to purchase my next home?
It could do however many lenders will regard the mortgage as being self-financing from the rental income. This allows all your main income to be used when assessing affordability and the amount you can borrow to buy your next home.
Are there additional costs that I need to consider?
Yes, on top of normal purchasing costs when you decide to keep your current home to rent out and buy a new home to live in, you will need to pay a 3% surcharge on the Stamp Duty Land Tax on the full purchase price of the property you are purchasing.
This one-off cost will put many people off renting their current property however owning a second property may significantly enhance your long term financial security.
To work out whether it is worthwhile for you, speak with an independent mortgage broker who will crunch the numbers and present them to you in an easy to understand format which will allow you to make an informed choice.
Useful calculators
Chat over your objectives with an Expert Mortgage Adviser now on
01273 736536
Chat over your objectives with an Expert Mortgage Adviser now on
01273 736536
Chat over your objectives with an Expert Mortgage Adviser now on
01273 736536
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