Let to Buy Mortgages

These are mortgages specifically designed for people who have been living in a property and wish to keep hold of it, when they either buy another property or wish to live elsewhere.

Not all Lenders are happy to lend on a Let to Buy basis, and many of those which do, will only accept applications from brokers rather than direct from borrowers.

So why do Clients keep their existing home and rent it out? Here are a few examples:

1. To generate some additional income*
2. To use the property as a repayment vehicle for all or part of an ongoing mortgage*
3. As potential pension income*
4. Because interest rates on savings are so low*
5. Sentimental reasons eg the original property was inherited from a grandparent
6. Where they are moving in with (or buying a new home with) a new partner, and wish to have the security of keeping their own home
7. To move home for a new job, and may move back to the family home
8. To keep the property for children to live in later on

*we cannot advise in these areas

Your borrowing amount will be dependent on both the Loan to Value and Rental Stress Calculations, and Lenders will have very specific criteria.

Willowlace Ltd can provide you with all the information you need and help you to make the most out of your options.

Some Lenders may consider a temporary “Consent To Let”, but there may be consequences eg higher rates of interest, not being able to change your rate of interest at the end of the current deal.

If you are buying another property, you may be subject to additional Stamp Duty. If you sell the property at a later stage, you may be able to claim this back, but there are timescales linked to this and you should clarify this with your Solicitor.

There are other advantages and disadvantages of this route, but we will carefully discuss these with you, so that you can make an informed decision.

If you are considering renting out your property locally to us, our sister company Fleur Lettings can offer you advice regarding the rentability of your property and the likely achievable rent. Fleur Lettings offers competitive fees and a great service and between the two businesses we can help our Clients achieve a seamless finance and rental service.