Let to Buy Mortgage in Leeds - Leedsmoneyman

Let to Buy Mortgage in Leeds

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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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Let to Buy Mortgage Advice in Leeds

A let to buy mortgage in Leeds, as touched upon above, will typically occur when the owner of a residential property instead looks to remortgage their home onto a buy to let mortgage, as well as buying a new residential property for them to live in.

 

Rather than looking to sell your current home and potentially dealing with the hassle of a property chain before you look to move into your new home, a let to buy mortgage in Leeds can actually help to reduce a lot of the stresses and pressure from your process, whilst also generating some income for you in the process.

 

Whilst there are advantages and disadvantages, and it’s important to be aware of these. As providers of open & honest mortgage advice in Leeds, we have an in-depth knowledge on situations like these, and have put together a comprehensive list of the pros and cons to a let to buy mortgage in Leeds, in the section below.

The Positives and Negatives of a Let to Buy Mortgage in Leeds

First of all if we take a look at the positive of this, it can be much easier than going through all the stress involved in selling your current home and finding somewhere else to live. Additionally, it is a means to earn additional income that will also pay for its own mortgage.

 

The negative to this, is that whilst it reduces the stresses of selling, you will then become responsible for two properties instead of one, which in itself can be quite stressful for you as a property owner. One of these properties will also be housing a family, which you also have some level of responsibility for.

 

As mentioned though, this will give you extra income to live with, which can be great. You will need to bear in mind that these mortgages, however, may have a higher interest rate for you than would typically be found with a residential mortgage. There are also fewer mortgage lenders who have let to buy mortgage deals, though thankfully there are still plenty available, who we have on panel.

 

That being said, whilst they will be higher than residential mortgage rates, a let to buy mortgage in Leeds may have much more competitive interest rates and fees than a buy to let mortgage in Leeds would, which could work in your favour.

 

You’ll also have to bear in mind the property value. If the value of both your properties increases, you could potentially grow your gains and find yourself with some good profit if you look to sell later down the line. Conversely, if the value drops for each property, you could be at a loss.

So, is a let to buy mortgage in Leeds right for me?

There are a lot of pros and cons for you to consider when taking out a let to buy mortgage in Leeds, but it all depends on how you weigh up the impact of these to you personally. It may be worthwhile and yet there may also be other options that are more viable for you.

 

What are those options though, what else is available to you?

Alternatives to a Let to Buy Mortgage in Leeds

If a let to buy mortgage in Leeds isn’t quite right for you, there are other steps you may be able to take, such as moving into temporary or rental housing, in preparation for taking out a standard buy to let in Leed.

 

The issue here, is this type of practice can end up being quite costly, difficult to get out of, and you also may not meet the criteria for a mortgage lenders buy to let mortgage.

 

Another potential option may be something called a consent to let, in which a mortgage lender will grant a homeowner a specific length of time that you can rent out your property, giving you chance to move into your home ahead of time.

 

This may initially seem like an easier option, though it does depend on the mortgage lender you are with. Furthermore, obtaining a mortgage whilst you have a consent to let in place may be a little more challenging.

 

Lastly, you may find that an alternative for ou could just be to sell up your home, move into rented housing and then stay there, until you are ready to commit to buying a house once again. This can be a complex cycle to break free from, however, though due to the lack of a property chain, may put you in a better position for your next mortgage.

Why choose us to help you remortgage onto a let to buy mortgage in Leeds?  

Our fantastic team of hard working and dedicated mortgage advisors in Leeds have a vast, in-depth knowledge of helping many homeowners to take the next step in their mortgage experience, as they take the next steps to their new life as a landlord, with a let to buy mortgage in Leeds.

 

As a team of trusted and reputable mortgage advisors in Leeds, we work hard every day of the week, from early on in the morning until late at night. This means we are able to offer our customers appointments at times that are most convenient to your daily life, subject to appointment availability.

 

Every customer who gets in touch will reap the benefits from a free mortgage appointment that will take place either over the telephone or with a Microsoft Teams video call.

 

You may believe that you have a rather difficult situation, but by using our 20+ years of mortgage advising experience, we are able to tackle a wide variety of mortgage circumstances. It is highly likely that we will have come across something similar to your mortgage situation in the past.

 

We know that getting a mortgage can have its complexities, so we’ll make sure we are always here to answer any burning questions you may have for us. We work for you, aiming to reduce your stress levels and bring you one step closer to the edge of mortgage success.

 

Our fast & friendly mortgage advice team have the ability to look through 1000s of mortgage deals on your behalf. As a newly crowned landlord taking on the process of a let to buy mortgage in Leeds, you want to know you have the best mortgage deal. It’s our goal to give you a positive mortgage experience!

 

Book yourself a free mortgage appointment online today and speak with a member of our fantastic team of mortgage advisors in Leeds.

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Common mortgage
questions

Our free initial mortgage consultation can roughly last up to one hour. As a skilled Mortgage Broker in Leeds, we can get you an Agreement in Principle within 24 hours after we have all the correct information. On average, a formal mortgage offer takes about three weeks. 

If you’re an employee, you will usually have to supply three pay slips to prove your income. If you are Self Employed in Leeds, it is typically the latest two years’ accounts. You will also need to provide proof of ID, address and three months’ bank statements. 

If you can show evidence of at least one year’s accounts, you may be able to get a mortgage. Most lenders in Leeds will use your salary plus dividend to work out your maximum mortgage. However, some can go off your net profit. 

Despite having shown any credit problems in the past, the good news is you may be able to get a mortgage, but it means you may be required to put down a higher deposit, e.g. 10 – 15% of the property purchase price.

Suppose you are looking to put down a deposit for a property in Leeds. In that case, most High Street lenders will ask for a minimum deposit of 5%, and others might ask for a higher amount depending on your circumstances, e.g. If you have had any previous credit problems.

You can have two mortgages running simultaneously, as long as you can afford to repay the monthly instalments on each of them. If you’re looking to accomplish something like debt consolidation or home improvements, you may be able to place a second mortgage on your home. 

An Agreement in Principle typically lasts for between 30 and 90 days depending on the Lender used. If your Agreement in Principle expires, it can easily get renewed by speaking to a Mortgage Advisor in Leeds. 

As a committed Mortgage Broker in Leeds, we will carry out a Fact Find to establish your personal needs before we go ahead with advising the most suitable mortgage for your circumstances. From there, you will be credit checked, which is a requirement to obtain an Agreement in Principle. Once you have provided all the relevant documentation and a valuation of the property has been undertaken, you can be issued a formal mortgage offer. 

Your free mortgage consultation with a Mortgage Advisor in Leeds will last around one hour. Once they have evaluated your circumstances, they will advise a mortgage with no obligation for you to proceed. Based on the deal, you can determine whether or not you want to continue the process. 

To help demonstrate that you are creditworthy and assess your affordability for a mortgage, we recommend getting an Agreement in Principle ready before viewing properties in Leeds. At the very latest, you should obtain one before making an offer to assist your bargaining position and show any seller that you are ready to proceed should they accept your offer. We are typically able to obtain an agreement in principle within 24 hours.

We make it so easy!
Our 4 step process

Step 1

A telephone call where we can take some initial details and find out about your plan of action.

Step 2

Enjoy finding a property!

Step 3

Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a great deal.

Step 4

Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.

A telephone call where we can take some initial details and find out about your plan of action.

Enjoy finding a property!

Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.

Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.

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Authorised and Regulated by the Financial Conduct Authority.
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The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
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www.financial-ombudsman.org.uk

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