Are you thinking of purchasing a new home? Did you know that it may be possible to keep your current property and raise funds for a new home with a let to buy mortgage?
Quite often, our clients prefer to keep their property instead of selling, and a let to buy mortgage may make that a reality.
What is a Let to Buy Mortgage?
Easily confused with buy to let, the difference between a buy to let and a let to buy mortgage is quite simple. With a buy to let mortgage, you purchase a property with the intention of renting it out. With let to buy, you remortgage your existing residential property with the intention of letting it out, to fund the deposit for your onward residential purchase.
Why Let to Buy?
Let to buy mortgages are growing in popularity with our clients and there are many reasons for this.
For example, you might want to buy a new home but keeping your existing property because you think it may rise in value over the long term.
Let to buy is also popular with those who are relocating for work and want to purchase a property in their new location but would like to keep their existing property as an investment.
Are There Any Downsides?
The fact that a let to buy mortgage enables you to own two properties is great. however, this also means you’ll be responsible for two mortgages and this can, of course, worry some people. This also means that if house price fall you’ll be impacted twice as hard.
In addition to the above let to buy rates are not as good as standard residential rates, mainly because of the increased risk of owning more than one property.
Whatever your reasons, a let to buy mortgage may enable you to purchase a new property whilst keeping your current property. Our award-winning mortgage brokers are available to support you throughout the process. Get in touch with us on 0208 364 3444 or use the instant chat function on our website www.mortgagesandinsurers.co.uk