What is a let to buy mortgage?
A let to buy purchase and mortgage is the act of renting out your current home, so that you are able to purchase a new home for yourself to live in, becoming a landlord to your old home in the process.
For a homeowner to be able to achieve this, they will have to remortgage their property from the residential mortgage that it will currently have, allowing them to then take out a let to buy mortgage.
Furthermore, the homeowner will be taking out a new residential mortgage on the home that they are planning to move into.
Both mortgages will run alongside each other, as you will need the funds to be released from your remortgage on the first property, in order to place a deposit for your new home.
This doesn’t mean you will have to use the same mortgage lender, you just have a mortgage that will be relying on the other one being completed.
What is the difference between a let to buy mortgage and buy to let mortgage?
As you can probably tell from the very similar sounding names, a let to buy mortgage is just another type of buy to let mortgage.
A buy to let in Leeds is where you take out a mortgage on a property, with the sole intention of letting (renting) out a property, so that you have a means to generate additional income.
The difference when you have a let to buy mortgage in Leeds, is that it is often something found with “accidental” landlords, who perhaps at first didn’t have any plans to become a landlord, later deciding that this is something they would like to do.
Instead of going through all of the stress involved with selling your home and purchasing a new buy to let, often homeowners will decide to just rent out the home they already have, using the income generated to pay off the balance of their new residential mortgage, on the new home they have moved into.
Stamp Duty Charges
You should always make sure that you are aware of the costs involved when you are applying for a mortgage, and this works exactly the same for a let to buy mortgage in Leeds. Stamp Duty will not apply to every user, so it is always that you look into this ahead of time.
As an open & honest mortgage broker in Leeds, one of our trusted mortgage advisors in Leeds will make sure that you are aware of all the costs that involved in your process, including Stamp Duty, whilst you are in your free initial mortgage appointment.
How to get a let to buy mortgage in Leeds?
In order for you to obtain a let to buy mortgage in Leeds, you will need to be able to meet appropriate criteria. Your trusted mortgage advisor in Leeds will review your case during your free mortgage appointment, so that they can determine is this is right for you to do.
The qualifying criteria that you will have to meet in order to get this type of mortgage, include meeting affordability requirements for your new home, having at least a 10% deposit for your new home, as well as a 25% deposit to put down for your buy to let (this can be equity that you have released during your first properties remortgage).
You will also need to make sure that the income you make from your rent can cover 125% of the payments you now have for your new buy to let mortgage. A good credit score will be recommended, though you could possibly obtain a let to buy mortgage if you have bad credit.
Can I get a let to buy mortgage in Leeds with bad credit?
Because this type of mortgage will be linked to a residential and buy to let aspect of owning a property, you may find that you have much stricter criteria for a let to buy mortgage in Leeds.
Whilst you might have a low credit score, CCJ, default and a history of late payments, and those sorts of things may have an impact on your ability to take out a mortgage, there are specialist mortgage lenders that we have available on panel, that may potentially be able to help.
Speak with an Expert Mortgage Broker in Leeds
As providers of fast & friendly mortgage advice in Leeds, we have helped a lot of customers to remortgage their property and switch it to a residential mortgage, on a let to buy mortgage in Leeds.
Our team of dedicated mortgage advisors in Leeds are able to take a look through 1000s of let to buy mortgage deals, in order to find the most suitable one for your personal and financial circumstances.
Book your free mortgage appointment online with an experienced mortgage broker in Leeds today and we will look at the ways we are able to help you.
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.The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.