What is a let to buy mortgage?
A let to buy purchase and mortgage involve renting out your current home to purchase a new one to live in.
To make this possible, you’ll need to remortgage your current home, switching from a residential mortgage to a new let to buy mortgage. At the same time, you’ll also be taking out a new mortgage for your new home.
These two mortgages will run concurrently, though they may not be with the same lender. They will be separate entities, but you’ll release funds from one to put down the deposit on the other property.
This process allows you to retain your current property as an investment while moving into a new home for your own residence.
It can be a strategic financial move, providing you with potential rental income and the opportunity to secure a new place to live.
What is the difference between let to buy mortgage and buy to let mortgage?
A let to buy mortgage in York is a variation of a buy to let mortgage, and the names may sound similar because they share similarities in their purpose.
A buy to let mortgage involves taking out a loan on a property you’ve purchased with the intention of renting it out to generate additional income.
On the other hand, a let to buy mortgage in York is typically sought by “accidental” landlords.
This situation arises when someone initially does not plan to become a landlord but later changes their plans and decides to rent out their current home.
Instead of going through the stress of selling their home and purchasing a new buy to let property, many homeowners opt to rent out their home and use the rental income to pay off their new residential mortgage.
This approach allows them to retain their current property while moving to a new home and potentially benefiting from rental income on the first property.
Stamp Duty Charges
When considering a let to buy mortgage in York, it’s essential to be mindful of the various costs that come with it, including potential stamp duty tax.
While stamp duty may not apply to everyone, it’s essential to check in advance to be fully aware of any applicable costs.
As a dedicated and trusted mortgage broker in York, our team of mortgage advisors will provide you with a comprehensive overview of all the costs involved in your mortgage process, including stamp duty, during your initial free mortgage appointment.
This way, you can make informed decisions and have a clear understanding of the financial aspects of your let to buy journey.
How to get a let to buy mortgage in York?
Before obtaining a let to buy mortgage in York, it’s crucial to ensure you meet the appropriate mortgage lending criteria.
Your trusted mortgage advisor in York will carefully review your circumstances during your free mortgage appointment to determine if this option is suitable for you.
To qualify for a let to buy mortgage, you’ll need to meet specific criteria, including affordability requirements and having at least a 10% deposit for your new home.
Additionally, you should have a 25% deposit to put down on your new let to buy mortgage in York, which can be achieved using the released equity from your remortgage.
Moreover, you’ll need to demonstrate a rental income that covers 125% of the mortgage payments on your let to buy property.
While having a good credit score is recommended, it may still be possible to secure a let to buy mortgage in York even with bad credit, depending on individual circumstances.
Your mortgage advisor will guide you through the process and help you explore suitable options for your unique situation.
Can I get a let to buy mortgage in York with bad credit?
Due to the dual nature of let to buy mortgages, the mortgage lending criteria can be more stringent in York.
A history of low credit score, CCJs, defaults, or late payments can indeed impact your ability to secure a mortgage.
We work with a wide panel of mortgage lenders, including those offering specialised products, which means there may still be options available for obtaining a let to buy mortgage in York, even with bad credit.
Our mortgage advisors in York will diligently explore these options, leveraging our network of lenders to find a solution tailored to your circumstances.
We understand that each individual’s financial situation is unique, and we are committed to helping you navigate the complexities of let to buy mortgages and find the best possible outcome for your specific needs.
Speak with an Expert Mortgage Broker in York
As reputable and experienced mortgage advisors in York, we have assisted numerous customers in remortgaging their homes into let to buy arrangements, enabling them to embark on their journey as landlords.
Our skilled team of mortgage advisors in York is well-equipped to scour through a vast array of let to buy mortgage options, ensuring we find the perfect fit for your unique financial circumstances and goals.
If you’re considering a let to buy mortgage in York, we invite you to schedule a free mortgage appointment with one of our dedicated mortgage advisors today.
Together, we will explore the possibilities and guide you towards the most suitable solution, making your property aspirations a reality.
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The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.