Let to buy mortgage lenders are lenders that are happy to allow an existing residential property to let out in order for the owners to buy another residential home. If no extra money is needed then this will often simply involve writing to the existing lender for a consent to let. If, however, further money is needed from the residential home before it is let out in order to purchase the new residential property then the existing one will need to be remortgaged onto a buy to let product.
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Let to Buy Mortgage Rates UK
The UK has some of the most flexible let to buy mortgage providers in Europe and as a result the rates are extremely competitive. An increasingly sophisticated public has led to a wide choice of products and features to choose from. It’s not as simple as picking the best let to buy mortgage lender as borrowers will also have cashback, different types of rate such as trackers and fixed rates as well as vastly different rules on minimum income and rental calculation.
How Let to Buy Mortgage Lenders Work
Let to buy mortgage lenders assess the property based on the expected rental returns that you will receive. If you can rent the property for a sufficient amount you may even be able to raise additional funds to help you buy your new home. Because your income is no longer being used to fund the mortgage payments your new mortgage lender will often ignore the cost of the let to buy mortgage when assessing your ability to borrow money for the purchase of your new home.
Difference Between Buy To Let and Let To Buy
The main difference between these two is that when you obtain a buy to let mortgage you are usually buying a new property with the intention of letting it out. When you are obtaining a let to buy mortgage it is usually with the intention of renting out a property you already own, perhaps enabling you to raise some more money for a new purchase. Lenders do mix up their terminology though with some using the terms interchangeably. It is therefore important to seek proper advice and make sure you select the correct product for your transaction.