Correct at 06/09/2021
If you want to rent out your home and buy a new property to live in, L&C can help find the best Let to Buy mortgage for you.
We can compare all the Let to Buy mortgages you’re eligible for and, because this type of mortgage can be more complicated than a standard residential mortgage, our experts are on hand to provide you with any advice you might need. We can also help you access semi-exclusive Let to Buy deals that aren’t available on the high street, so get in touch today and see what we can do for you.
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Let to Buy mortgages are for homeowners who want to hang on to their current property and let it out so they can buy and move into a new home. It can be a good option for those who are finding it difficult to sell their home, or who don’t want the pressure of having to sell in order to move on.
Homeowners using Let to Buy need two mortgages; one for the property they want to let out, and another for the home they are going to buy to live in. If you’re considering Let to Buy, remember that there are additional Stamp Duty charges to pay when you buy a second home, so you’ll need to factor in these costs when thinking about how much you can afford to spend. Take a look at our Stamp Duty calculator to find out how much you’ll need to pay.
It’s also worth bearing in mind that there’s a relatively limited supply of Let to Buy mortgages available, which can mean interest rates can be higher than for other types of mortgage. Our mortgage experts can explore all the different options available to make sure you get the mortgage that’s right for your circumstances.
A relatively small number of lenders offer Let to Buy mortgages, and many of the deals they provide are only available through mortgage brokers. Get in touch today and we can talk you through all the Let to Buy mortgage deals that you might be eligible for. We’ll compare deals from across the market and our service won’t cost you a penny.
Lenders will look at your income when you take out a Let to Buy mortgage, but you’ll also need to meet eligibility criteria. These can vary from lender to lender, but you’ll usually need a large deposit or equity of at least 25%, a monthly rental income of at least 125% of the mortgage interest, and a good credit rating to qualify.
The most you can usually borrow on a Let to Buy mortgage is 75% of the value of the property you plan to let out.
Getting a Let to Buy mortgage can be trickier than getting a standard mortgage, as you’ll need to be able to prove to lenders that you can cover mortgage costs for two properties if there are any periods when your rental property is without tenants. At L&C, we can advise you on which deals you’re most likely to be accepted for.
Choosing the right mortgage for you can be really tricky.
At L&C our expert advisers guide you through the process. Simple and efficient.
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