Let to buy mortgages
If you want to move home but are struggling to sell your current property, renting it out could be a solution. However, you may need the equity in your existing property to fund the purchase of your new home.
A let to buy mortgage could be the answer in this scenario, releasing equity and providing mortgage repayments from the rental income of your current property.
Provided you have enough equity in your existing property you could remortgage using a let to buy mortgage. This would release some of the equity allowing you to part-fund your new home, by providing the deposit, for example. Your increased mortgage payments are then serviced by the rental income once tenants are in place. This mortgage can be on an interest only basis, potentially creating additional income.
Using a let to buy mortgage allows you to release the finance for your new home without increasing your monthly repayments significantly.
Benefits of a let to buy mortgage:
• You will earn rental income from your current home while being able to purchase another property.
• This course of action could release the property chain to allow the process to continue.
• You are able to retain your current property as an investment, whilst the mortgage is paid by rental income.
Note however that you will be applying for two mortgages: one which is buy to let and one which is a standard residential mortgage. However, both mortgages are applied for at the same time so lenders will be aware of your purchase intentions.
Making it easier to move without selling your property
We know the appropriate lenders to approach for this more complex circumstance, so give us a call at Aspire Financial Services to arrange your free 30-minute consultation.