The mortgage market can be a very confusing place, with ever-changing criteria and new products popping up all the time, many don’t know where to start.
We are often asked what the difference is between Let to Buy and Buy to Let mortgages. These mortgage products are unlike the traditional residential mortgage you might take out for your own home. We explain the differences in further detail below:
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.
If you want to become a landlord or purchase another investment property while buying a new home, Let to Buy can be a fantastic route to take. By retaining your old property and purchasing a new one, you’ll benefit from double the capital increases in those assets, as well as receiving an additional income in the form of rent.
If you would like to discuss options available to you, speak to a member of the team or our senior broker, Danny O’Keeffe on 0208 364 3444 alternatively schedule a call back by clicking on the button below.
In Other News:
The Bank of England has increased the Base Rate for the fifth time this year as inflation hits 9.4%, the highest level since 1982. It has warned that the UK will start falling into a recession that will last over a year, as soaring energy prices continue to hammer the economy.
If your mortgage deal is expiring in the next six months, now is the ideal time to look at whether remortgaging and fixing your mortgage costs could save you money.
The Bank of England has announced that it will axe a key mortgage affordability guideline designed to prevent people from financially overstretching.
The stress test meant borrowers had to prove they could afford their mortgage repayments if their mortgage rate was to increase to 3 per cent above their lender’s standard variable rate.