Remortgage my current residential home as a Buy to Let and use some of the money to buy a new residential place using a Let to buy Mortgage.
Let the buy mortgages are the norm with clients wanting to retain their existing residential homes and opting to convert them into buy to let mortgages.
The mortgage process however is protracted for Let the buy as essentially you’re dealing with two finance transactions: i) the remortgaging your existing property to a buy to let mortgage; ii) the mortgage to purchase of the new property on a residential basis.
The key to the success of this transaction to carry out staggered decision-in-principles, with the remortgage run first, and then simultaneous applications. This provides certainty in the appropriate order and shortens the overall processing time and therefore pacifies the vendor.
The other key component is in the selection of the mortgage lender for the remortgage transaction. Every lender has their favorite surveyors and some are more generous in their assessment than others. We have the experience to navigate this aspect to a tee enabling you to raise the maximum on the buy-to-let portion, which suits as it can be offset against tax, and saving 40% normally outweighs any other perceived benefit such as 0.25% here and there on an interest rate.
Other factors to take into the equation include the ‘equity’ in the let property and the rental coverage in percentage terms. Every lender has their own nuisances and rules in this regard and they differ greatly so you will almost certainly benefit from professional buy-to-let mortgage advice.
For more information on how we can help with your Let to Buy Mortgage please contact us on (020) 7993 2044 or alternatively complete our enquiry form on the right-hand side of this page.
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on Property financing both on residential and commercial lines.
You can call Payam on 020 7993 2044 or alternatively complete the enquiry form so he can personally get in touch with you.
Niche Advice is not tied to any bank, building society, estate agent or insurer and offers Independent Mortgage and Insurance advice.