MORTGAGES

Let to Buy Mortgages

With a buy to let mortgage, you are purchasing a property specifically to rent out, whereby with a let to buy you are buying a new property to live in yourself and renting out your current home. The let to buy mortgage is secured on the original property that you are intending to rent out. It is essentially a buy to let mortgage on your current home.

Let to buy can be a viable option for those that want to buy a new home, but also want to retain ownership of their current home. It is possible to release some equity from your current home to fund the deposit for a new larger property. It is also an option for couples who have decided that they want to live together as it’s possible to move into one of the properties and rent out the other one using a let to buy mortgage.

Pros of Let to Buy

You don’t have to sell your existing home if you don’t want / need to
If you are struggling to sell your current home, it’s a good option as it can speed up the purchase of a new property
You will own two properties so if values rise in the future you will benefit from both increases
You want to keep your existing property as you intend to move back there some day
Potential to increase your income from letting out the property
Lending criteria is similar to buy to let therefore interest only is possible

Cons of Let to Buy

Renal voids (periods when there is no tenant) would mean that you would be liable for two mortgage payments
You are now a landlord and with that comes a lot of responsibility
Rates are not quite as good as residential mortgages as you would need to remortgage your current deal on to a buy to let mortgage unless you have been granted consent to let from your current mortgage provider
You will of course have to stamp duty on the value of the new home you are buying plus a further 3 (4% in Wales)

*Sometimes a Let to Buy mortgages can be classed as a “Consumer Buy to Let” mortgage and is therefore regulated by The Financial Conduct Authority (FCA) in the same way as a residential mortgage. We will inform you as to whether your Let to Buy mortgage is regulated.

ANY PROPERTY USED AS SECURITY, INCLUDING YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. COMMERCIAL MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY OR THE PRUDENTIAL REGULATION AUTHORITY.

To speak to one of our experienced mortgage advisers today about let to buy mortgages requirements

Call FFP today on

01745 530020

or fill out the Contact Us form.

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MORTGAGES

Let to Buy Mortgages

Pros of Let to Buy

You don’t have to sell your existing home if you don’t want / need to

If you are struggling to sell your current home, it’s a good option as it can speed up the purchase of a new property

You will own two properties so if values rise in the future you will benefit from both increases

You want to keep your existing property as you intend to move back there some day

Potential to increase your income from letting out the property

Lending criteria is similar to buy to let therefore interest only is possible

Cons of Let to Buy

Renal voids (periods when there is no tenant) would mean that you would be liable for two mortgage payments

You are now a landlord and with that comes a lot of responsibility

Rates are not quite as good as residential mortgages as you would need to remortgage your current deal on to a buy to let mortgage unless you have been granted consent to let from your current mortgage provider

You will of course have to stamp duty on the value of the new home you are buying plus a further 3 (4% in Wales)

To speak to one of our experienced mortgage advisers today about let to buy mortgages requirements

Call FFP today on

01745 530020

or fill out the Contact Us form.

01745 530 020

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