Last Updated: February 2nd, 2024 at 6:41 pm
The Let to Buy process involves a distinctive approach to property ownership and investment. It can be an attractive option for homeowners looking to step into the property investment market while purchasing a new residence. This guide will walk you through the key steps in the Let to Buy process.
The first step typically involves remortgaging your existing property under a Buy to Let mortgage. This switch often requires having enough equity in your current home to release cash for the deposit on your new property. It’s important to secure a mortgage deal that aligns with the expected rental income and your financial situation.
With the deposit from your remortgaged property, you can then proceed to purchase a new home. This purchase will usually be financed with a standard residential mortgage. The terms and approval for this mortgage will depend on your financial status, including your income, credit history, and the rental income from your current property.
Eligibility for Let to Buy involves meeting specific criteria. Lenders will assess your ability to manage two mortgages simultaneously, your equity in the existing property, and the potential rental income. You’ll also need to demonstrate that the move is a genuine relocation, not just an attempt to accumulate property.
The Let to Buy process offers a strategic way to move into a new home while leveraging your current property as a rental investment. It requires balancing two mortgages and understanding the responsibilities of being a landlord. Careful financial planning and consultation with mortgage advisors, like our team at Green Mortgages, are key to successfully navigating this process and ensuring it aligns with your financial goals.
