Moving homes can be emotional, with a lot of sentiment tied up in your property, you might not want to sell up and move on. Other situations might mean you aren’t in a position to sell your home, leaving you with confusion over the options you have.
If you aren’t looking to sell your home, you could consider a let-to-buy mortgage. Contact our team of professionals who can advise you on all areas of this option and what the next steps might be.
Sometimes it’s not possible to take moving home at your own pace, if you can’t wait to sell your property and need to move quickly a let to buy mortgage could be a suitable option.
Let to buy can also be appealing if you want to move in with a partner but maintain ownership of your own property, possibly to retain as an investment.
Although both suited to individuals wanting to rent out a property, buy to let and let to buy are different. If you wanted to purchase a property for renting out only, you would choose a buy to let mortgage.
A let to buy arrangement involves setting up two mortgages. A buy to let mortgage on the property you will rent out and a standard or residential mortgage on the property you will move into. These two mortgages will be taken out with the same lender.
To allow people to rent your current property you will need to convert your residential mortgage to a buy to let mortgage.
Yes, stamp duty is considered an additional cost and will require you to pay a 3% surcharge. A letting agent will also come at an extra cost but can help you take a more hands off approach.
You will need to meet certain criteria for most lenders which will depend on your rental income. This will likely be a borrowing limit of 75%-80% of your current home value.