Let to buy is a very useful mortgage product in certain scenarios . It’s been around for a long time, but has become more popular over the last few years.
Let’s say you've found a new home and you want to buy it but your own home hasn't yet sold. You’ve found the dream place and you want to move and at one time you’d have been stuck until you found a buyer for your old place.
Another possible example might be that you just wish to hold on to your current home as an investment property and would prefer not to part with it.
"The big advantage is you become a chain free purchaser"
One possible solution is to let your property to tenants by taking a let to buy mortgage enabling you to make the move. If you have enough current equity in your home, you could potentially release some capital at the same time to help put down as a deposit on your new future home. You could also in certain scenarios just make a move to a new property to rent, or move in with family but this is a much more restricted market and lenders will take steps to ensure you are making a genuine move.
Whatever the trigger, one big advantage to buying this way is you become a chain free purchaser, so you're not relying on anyone else buying your house to move forward with your next home purchase.
If you’re weighing up your options you should think carefully and certainly take some specialist advice, because there are some big considerations. Although it might be a good way to buy your next property, don’t let your potential new home cloud your judgement!
Let to buy works in exactly the same way as buy to let, but on its head. So rather than purchasing a specific buy to let investment property, you're switching your existing home and making that the investment, hence you are 'letting to buy' another residential home in which to live.
You can also make a move without having to purchase a new home but there are some caveats to that, lenders will want to satisfy themselves that you have moved on.
"Our Job is to make the process easy for you"
However, searching our ‘buy to let best buys’ doesn’t really help, as some lenders don’t allow let to buy and others have dedicated products so it’s hard to figure out the right deals.
Our job is to make the process easy for you, knowing which lenders do what and how and making sure the lender and scheme we choose can ultimately deliver the best funding for you. It saves you a lot of groundwork!
We crunch the numbers carefully and recommend deals purely on their competitiveness and suitability to you. You may also qualify with your existing lender for a ‘consent to let’, which may save you needing to remortgage but we’ll advise you on what’s best for your specific situation.
So with us, you don’t just get a ball park idea, you get the specifics.
However you think let to buy can work for you - talk to us. Call us free to run through the scenario and we’ll advise you if it's viable and recommend the very best approach for your desired outcome.
Don't be afraid to contact us, we're a friendly bunch!
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