Help you to get a let to buy mortgage
For homeowners that are looking to move but are struggling to sell their property, renting it out can appear to be the perfect solution to enable them to move. Unlike a buy to let mortgage, a let to buy mortgage in most cases will need the equity within an existing property to part-fund a new home purchase.
In such situations a let to buy mortgage may well be the answer as it releases the equity from the existing home with mortgage repayments being funded by the rental income. Our let to buy mortgage brokers have spent years helping customers find the right deal for them.
We can source you a let to buy mortgage deal from a range of specialist lenders giving you the freedom to move from your existing home without being forced to sell at a lower price for a quick sale.
How does it work?
If you have sufficient equity in your property you can remortgage using a let to buy mortgage to release some of the equity to part-fund a new home. Your existing property is then let out with the rental income servicing the increased mortgage repayments.
By using this approach, you not only enable yourself to take out a mortgage for your new home but also do not significantly increase your monthly repayments. There are a number of benefits to obtaining a let to buy mortgage including:
- Earning rent from your existing property whilst being able to purchase another.
- Moving the chain process on if selling the property is proving more difficult than anticipated.
- Enabling you to keep your current property as a long-term investment whilst the mortgage is paid by rental income from your tenants.
Finding the right let to buy mortgage deal for you
Due to the nature of the deal, let to buy mortgages are a particularly complex arrangement to figure out; your broker needs to source multiple mortgages that you qualify for and arrange them to happen at the same time. If you’re not working with a specialist let to buy mortgage broker, you may find the process takes longer than you’d like, is more expensive than you’d expect, or just doesn’t go through.
Our let to buy brokers work closely with applicants just like you every day, so they have a comprehensive list of lenders in this niche, and work closely with lenders that you won’t find with other let to buy brokers.
Making it easier to manage your property portfolio
At Key Solutions we have extensive experience in finding the right residential and buy to let mortgages for our clients. We are therefore ideally placed to help you with your let to buy mortgage. Give our team a call on 0800 138 5856 or get in touch below.
Our advice to you is also backed by our unique unconditional service and 100% mortgage guarantees which means you can proceed with absolute confidence that you will get a guaranteed mortgage and the very best service! Read more about our guarantees.
Let to buy mortgage FAQs
A let to buy mortgage means you rent out your current property so you can buy a new one that you will live in. The let to buy mortgage will apply to the property you’re renting, while you simultaneously get a standard residential mortgage on the house you’re planning to live in.
It’s important to work with a reputable let to buy mortgage broker as you’ll essentially need to gain two mortgages at the same time; a let to buy mortgage on your current property, and a residential mortgage on the property you’re planning to live in. It is not the easiest process to go through, so make sure you’re working with a let to buy broker with experience.
If you have all your documentation in order a let-to-buy mortgage should take no longer than a standard residential move. In most cases, both mortgages will need to complete at the same time, so you’ll need a broker you can rely on and a good solicitor too.
It can be possible to obtain a buy to let mortgage without proof of earnings, depending on your specific circumstances. Some lenders have no minimum income requirement, and will base the decision to lend solely on the rental income the property will generate.
All lenders will be different, but most will require you leave a minimum 25% equity in the property you’re renting after any additional borrowing for the deposit on your new home (75% LTV)
Let to buy mortgages on average tend to be more expensive and require a higher deposit, often around 25%.
When remortgaging a let to buy mortgage, you will have similar options as you would have done when you set up the arrangement. If you would like to keep both mortgages with the same lender, you’ll need to find another one that offers both residential and buy-to-let mortgages for the purposes of a let-to-buy. You could also choose to remortgage each element separately, switching the residential element to one lender, and the buy-to-let element to another. It’s worth bearing in mind that the costs involved with two remortgages may well outweigh the benefits, especially whilst interest rates are generally high.