Let to Buy Mortgages
It may well be that you already have an existing residential mortgage and you wish to let your existing property out whilst purchasing a new property. This may sound complicated however is surprisingly easy.
Having two mortgages for most people would be too expensive and for most lenders seen as too much of a risk. However as you are proposing to let out your current home and purchase a new one, your current home will not count as a expense/outgoing and will therefore not be taken into account in a lenders affordability calculator.
Why is this? Simple, your property will be classed as a Buy to Let mortgage and you will be free to get a new residential mortgage, maybe as much as up to 95% loan to value (you have now let to buy!).
This offers many different opportunities for you. You may raise additional capital on your original let to buy property for most legal reasons i.e. providing the deposit for your new property, providing deposits for further multiple buy to let mortgages, debt consolidation etc. There are many options available to you.
This is of course dependant on the equity available in your existing property and your personal circumstances.
Please fill in our quick enquiry form, or call us for a free, no obligation consultation. You may also find our mortgages glossary useful to explain some of these terms.
Remember it is in lenders’ interest to provide you with a mortgage, as long as they do not feel you are stretching yourself. They want your business. A mortgage is generally a lower risk to them, compared to a personal loan, or a credit card, as they always have the house to “secure” the loan against if you are unable to make your payments.
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