Everything you need to know about Let to Buy
What is Let to Buy?
Let to buy is when you rent out your current property and then borrow against it to buy a new home for you to live in. You will need to convert your existing mortgage into a let to buy mortgage to rent out your property and then can use your rental income to pay for your mortgage. This will allow you to take out a new residential mortgage for your new home.
Am I eligible for a Let to Buy mortgage?
To be eligible for a let to buy mortgage you will need to provide lenders with the projected rental income so that they can compare against your existing mortgage payment. Your rental income should be at least 125% of your mortgage payments.
Will I need a deposit for a Let to Buy mortgage?
You will not need a deposit to convert your current residential mortgage into a let to buy mortgage. However, you will require a deposit for the mortgage of your new Redrow home
Is keeping my current home as an investment a good idea?
The Centre for Economic Business Research (CEBR) predicted that house prices are set to rise 15% in the next five years, so keeping your current home could represent a good medium to long-term investment.