A quick guide….
You’re probably already over familiar with the term ‘Buy to Let’ when it comes to mortgages, but perhaps not so familiar with the concept of Let to Buy.
In simple terms, a Let to Buy Mortgage offers an alternative solution to the standard Buy to Let mortgage and gives the borrower an opportunity to generate the funds to buy a new house to live in while their existing property is let out to tenants.
You can apply for a Let to Buy mortgage by contacting your mortgage broker who will then take you through the process and will calculate exactly how much you can borrow to purchase a new residence. The calculations made for a typical Let to Buy mortgage do not take your existing mortgage into consideration provided the rent charged to your tenants covers the cost of the mortgage.
As with any financial commitment, Let to Buy mortgage does have its advantages and disadvantages. While this type of mortgage is a fantastic way to ensure you retain a property as an investment and particularly if you have found yourself with little or no equity in your current home it gives you the option to wait until the housing market gathers momentum to secure a profitable sale. A Let to Buy mortgage is also the perfect solution for those wanting to build a property portfolio and see their investments grow and prosper as a long term way of saving for the future.