If you want to move house and you’re struggling to sell or you wish to keep hold of your property as an investment, what are your options?
A ‘Let to Buy’ is worth considering. A Let to Buy mortgage could allow you move into a new home without selling your property and potentially making a loss. A ‘Let to buy’ means your letting your existing residential property to buy another. Some lenders class this as a buy to let mortgage, can get confusing, just depends on which lender you go with.
Normally for a Let to Buy mortgage, you will need equity in the property, approx. 20-25%. Your projected rental income will affect your application; generally you will need 125% of the interest element. Most mortgage lenders also require a minimum income, approx. 20-25k per annum. Watch out for the arrangement fees, survey and legals fees…
You may get the option to rent your existing property with the same lender on a ‘consent to let’ basis. Generally this is temporary and may have an interest rate loading. Consent to let is normally granted on an exceptional circumstances, as your original application was on a ‘residential’ basis. Most mortgage lenders are lenient; some will not show any flexibility. It will depend on your lenders criteria towards renting.
TIP: If your an inexperienced landlord and your renting your property for the first time, go through an a reputable letting agent whom will do all the necessary checks beforehand. Find the right tenants as oppose to the maximum rent. Factor in students, DSS, students, kids… Take out landlords insurance.
Your best speaking to us beforehand and we’ll go through your options.
We Know Mortgages
111 Piccadilly
Ducie Street
Manchester
M1 2HY
www.weknowmortgages.co.uk