Let To Buy Mortgage
Helping you move on without the need to sell your current property.
A loan that one or more persons receive in order to buy a house or other residential property in which they will live. The loan is secured by a lien on the property; the borrowers repay it over a specified period of time. The interest on a residential mortgage is tax deductible under most circumstances.
Let to buy is a process that helps you move house if you’re struggling to or don’t want to sell your current property. There are a number of circumstances when let to buy can be a suitable option for home owners. Perhaps your current house has dropped in value, or you need to move quickly and the market isn’t moving as fast as you need it to.
How does let to buy work?With let to buy you convert the residential mortgage on your current home to a buy to let mortgage and release equity that can be used to purchase a new home. By releasing equity and converting to a rental property you free yourself from the property chain, allowing you to move and purchase a new home, with a new residential mortgage, much faster.
What do I need to be aware of when converting the residential mortgage on my current home to a buy to let mortgage?Before proceeding converting your current residential mortgage to a buy to let mortgage, it’s important to understand the differences between the two mortgage types. Buy to let mortgages are similar to residential loans, but there are minor differences you should be aware of. Generally, buy to let mortgage rates are higher than residential mortgages, and it’s likely that you will need to have a loan to value ratio of at least 75%. When converting your current home to a rental property, the lender will want to see evidence that the rental income from your property will comfortably cover the mortgage repayments when it is converted to buy to let. It’s therefore a good idea to speak with local letting agents or look at local property listings to give you an idea of the monthly rents for similar properties in your area. It’s also important to consider the implications of being a landlord. There are a number of important considerations to make before entering into the buy to let market; such as the legal implications, insurance responsibilities, property maintenance and mortgages are all aspects which need to be planned ahead of time.