Let to buy mortgage in Cheshire
If you are planning to move but are struggling to sell your property, renting it out can appear to be the perfect solution, freeing you up to make the move. However, what if the equity within your existing property is needed to part-fund your new home purchase.
In this situation a Let-to-Buy mortgage can be the answer because it releases the equity from your existing home and funds the mortgage repayments with the rental income.
With enough equity in your property you could remortgage using a Let-to-Buy mortgage releasing some of the equity to part-fund the new home (the deposit for example). Your existing property is then let with the rental income servicing the increased mortgage repayments. This can be done on an interest only basis, potentially creating additional income.
By using Let-to-Buy, you not only unlock the delay in purchasing your new home, but you also do not significantly increase your monthly repayments. Here are the benefits of using a let to buy mortgage including:
- Earning rent income from your existing property whilst being able to purchase another.
- Moving the chain process on if selling the property is proving more difficult than anticipated.
- Enabling you to keep your current property as a long-term investment whilst the mortgage is paid by rental income from your tenants.
It is important to note that by doing this you will effectively be applying for two mortgages. The standard residential mortgage and a Buy-t-Let mortgage. However, these are applied for at the same time, so the lenders are aware of your current and proposed property purchases.
Making it easier to move without selling your property
At Aspire Financial Services our experience allows us to know which lenders to approach for this more complex scenario.
Book a free 30-minute introductory call.