Most people will have heard of buy to let where you buy a property to rent out to someone else, but let to buy mortgages are an option for those who want to move into a different or larger home but currently have their finances tied up in their existing home. Perhaps they cannot sell it, or want to keep it to let it out whilst buying another home to live in. Hence the term, ``let to buy``.
Your current residential mortgage may allow you to rent your house out on a short-term basis if you`re struggling to sell it, but more often than not, you`ll need to arrange a let to buy mortgage.
If you own enough of the equity in your home, this kind of deal can also enable you to release money so that you can put down a deposit on your new property. The rent payments on your old home will help to pay off any remaining mortgage on your original house, while your regular income will now be able to be used to cover repayments on your new one.
This is different from a buy to let mortgage as this type of deal is done with the specific intention of renting the property out – with let to buy, it`s very much a route giving people the ability to move and retain ownership of their original home. Alternatively, it`s a good way of making the most of the buoyant rental market in the area you currently live in whilst waiting for your house to reach its optimum sale price.
Other than financial benefits, let to buy mortgages also free you from worrying about a downstream property chain, which can be especially helpful if you`re relocating and need to move to a new area quickly, you will need to find a tenant of course, but at least you are not relying on someone else selling their home to move into yours.
When it comes to let to buy mortgages First Choice Finance can work with you to find one for your individual circumstances from our panel. Find out more by visiting firstchoicefinance.co.uk or by giving us a call on 0333 003 1505 or 0800 298 3000.
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