Looking to move but want or need to keep your existing property as an investment?
Let-to-buy is when you rent out your current home and buy a new one to live in. It involves having two mortgages at the same time – you convert your current mortgage to a buy-to-let mortgage and then you take out a residential mortgage on the home you are buying.
Why a let-to-buy mortgage?
We find that the most common reason to want a let-to-buy mortgage is because you want to use the equity that has built up in your current home to enable you to move to a new one. All while you keep the existing home as a long-term investment.
Let-to-buy mortgages could be suitable for homeowners who:
- Are in a hurry to move to a new home and can’t wait to sell their current property,
- Have struggled to sell their home due to the housing market conditions,
- Want to buy a property with a partner but maintain ownership of the current home,
- Who are moving elsewhere for a few years but want to move back to the current home in the future.
Problems with let-to-buy mortgages
The main problem with let-to-buy mortgages is that you can’t just rent out your home and buy another one without first switching your mortgage because this would be breaching the terms of your initial home loan.
We always advise clients to speak to us if they are considering a let-to-buy mortgage because there are lots of moving parts.
As well as finding you the right buy-to-let mortgage and residential mortgage, we will be able to review the options available to you which may include not just letting your property out as an investment but raising additional capital to help with your onward purchase.