Let to Buy
If you are looking to move house but you are struggling to sell your current home, your property has decreased in value or you’d simple prefer not to let go of the property, then a let to buy mortgage may be suitable for you. Letting out your property could permit you to move into a new property without the added pressure of having to sell your property quickly, or at a loss.
Let to buy works on the premise that is there is enough equity in your current property, you can remortgage and release enough cash to put down a deposit on a new property. Your original property would then be let out and the rental income used to cover the mortgage repayments. This in turn frees you up to take out a mortgage for your new property and cover the mortgage repayments with your salary or other source of income.
A let to buy mortgage is becoming increasingly popular with relocating doctors and medical professionals who need to relocate across the UK for work, but intend to return to their original location one day. If you don’t wish to rent a property whilst working in a temporary location, a let to buy mortgage allows you to purchase a property in your new location.
Having landlord responsibilities isn’t for everyone, and entering into a let to buy arrangements shouldn’t be taken lightly. If you are confident you will earn a decent rental income from your let to buy property and you can handle the responsibilities of being a landlord (or appointing an agent to manage this for you), a let to buy mortgage is a solution worth considering. You typically need a 25% deposit to qualify for a let to buy mortgage and you will need to prove to the lender that you can meet the mortgage repayments.
Another option worth considering if you are struggling to sell your property, is to remortgage your property in order to release equity to pay for home improvements to update or refresh your property and make it more desirable to buyers.