Buy another property without selling your current one with a Let to buy Mortgage
The purchase market has been slowing for a variety of reasons so we are seeing a growing number of applicants opting to break the reliance of a chain by choosing to let their existing property out, this is known in the mortgage world as Let to buy.
One of the main drivers has been the assistance provided to first time buyers in the form of Help to Buy {link} which has diverted potential buyers away from the established second-hand property to the new build market due to the lighter deposit requirements.
With let to buy mortgages, you are essentially judging two finance transactions and it strongly recommended that you speak with a mortgage professional broker, such as Niche Advice, as an understanding of both Mortgage Lender’s rules is imperative. For example, some Mortgage Lenders will insist that the let takes place at the same point as the onward purchase; others may factor the costings of the other mortgage into their assessment – they all can take different underwriting approaches.
If you are considering letting your existing property and buying another you might want to read my other let to buy articles on the topic:
- Best Buy Mortgage for Let to buy
- Looking to let your existing property until the time is right to sell
- Want to remortgage existing property on to a buy to let
- Raise the maximum money to fund a deposit on a new purchase
- Bad credit let to buy mortgage
