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.
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.
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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.
We obtain let to buy mortgage rates from across the complete range that are on offer from UK lenders, helping you to find the most competitive interest rates. Let to buy mortgages are aimed at landlords who wish to rent their current home and move elsewhere. It is our priority that you are able to access the highest loan to value mortgage that is possible to buy a new home while yours is rented, keeping the interest that you will have to pay to a minimum.
Our knowledgeable team have extensive experience and work solely with buy to let mortgages and our only clients are landlords, so we fully appreciate your needs and all of the mortgages that are available; this includes mortgages from specialist lenders, which cannot be obtained direct. You may well be able to get an interest only let to buy mortgage, as these are considered just like an investment would be; alternatively buy to let mortgages are available, which allow your monthly rental income to take care of your repayments.
Selecting the Best Mortgage Advice
The Financial Services Authority regulates the mortgage advice you receive relating to buying the property you are moving to, even if it doesn’t cover that of the remortgage of your current home through buy to let. Should you wish to use the same person to advise on the whole transaction, they must be authorised and regulated by this body. If you are amongst the many people who require 80 or 85% loan-to-value mortgages, it might be necessary to switch from a residential lender to an alternative, as the former may not allow such a significant level of lending.
Unless you obtain the assistance of an independent advisor who can provide information about the whole mortgage market, you will not be able to receive the best buy on a rent to purchase mortgage. Not only this, but they must be regulated and have specialist experience in both buy to let and let to buy deals. Only some advisers have access to specialist lenders who are able to offer the greatest loan to values and those with adjustable terms; select your adviser carefully to make sure you don’t miss out on these great products.
Benefits of Using the Let to Buy Services We Offer
- Quick advice is available over the phone, to which no obligation is attached
- We have extensive experience within this area of mortgaging
- The best mortgage rates are available, obtained from across the market as a whole
- Your application is managed by us, saving you the bother
- You can raise capital for your next property by remortgaging with buy to let
- We can use estimated rental income, so you don’t need to have a prospective tenant when you approach us
Why Sell When You Can Let to Buy?
With many areas seeing depressed demand for property it makes sense to consider whether it’s better for you circumstances to let out your old home instead of selling before you move to you new home. You can raise money on your old home if you need a deposit. There is no need to find a tenant in advance, we can work with the estimated rental value of your existing home and remortgage it straight away for you freeing up capital to move.
Let to Buy Mortgage Advice
The buy to let remortgage part of the transaction will usually not be regulated by the Financial Services Authority, however the purchase of your new home will be. If you want to use the same advisor for both parts of your transaction you will need to ensure they are Authorised and Regulated by the Financial Services Authority. With many people needing either 85% or 80 ltv you may need to move from your residential lender to a new lender as they may not grant consent to let at such a high loan level.
You should seek whole of market, independent advice in order to obtain the best rent to purchase mortgage deals from an adviser who is both Regulated and preferably specialises in buy to let and let to buy transactions. Many specialist lenders will not be available to all advisers which with the highest loan to values and the most flexible terms often available through these lenders only means you could be missing out if you don’t have access to their products.
Renting out Your Home Could Be a Better Option
As many people are not currently looking to buy a property due to the difficulty they face in obtaining a mortgage, more than ever are looking to rent a home instead. For this reason you should consider whether you will benefit more from renting your property rather than trying to sell it. If you do not have sufficient funds for the deposit on the property you hope to buy, remortgaging can provide the money for this. Even if you do not have a tenant waiting to move in, an estimate of the money you will be able to obtain by renting it out will allow capital to be released promptly, ensuring you won’t lose out on the new home that you intend to buy.