What is Let To Buy?What is Let To Buy? https://www.ngiresidential.co.uk/wp-content/uploads/2020/01/what-is-let-to-buy-1024x576.jpg 1024 576 NGI Residential Mortgages NGI Residential Mortgages https://www.ngiresidential.co.uk/wp-content/uploads/2020/01/what-is-let-to-buy-1024x576.jpg
Have you found your ideal new home but are struggling to sell your existing property? Perhaps you and your partner wish to move in together but you both already own a home and don’t want to sell the remaining property?
Whatever the reason, bridging the gap between purchasing the new home and covering a mortgage on an existing property can fill some people with dread. However, there is a very straight forward solution that allows you to purchase your new home and rent out the existing property, using the income to cover the cost of the mortgage.
This is a let-to-buy mortgage and essentially means that you have two mortgages running concurrently, with you covering the payments on one of the properties and rental income covering the other. You may then choose to sell the first property at a later date or continue to rent it out.
Let-to-buy mortgages generally require you to have at least 25% equity in your home, evidence of rental income of typically 140% of the mortgage repayments and have a good credit history. It is important to note that let-to-buy mortgages are typically taken out on an interest only to maximise rental income to help fund potential rental voids and cost of repairs.
A mortgage is a loan secured against your property. Your property may be repossessed if you do not keep up repayments on your mortgage.
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