Let to Buy Explained

Let to buy is a process whereby a homeowner lets out their existing home in order to purchase a new one, without actually selling their current home. Let to buy is, in a sense, a kind of mirror-image version of buying a property to rent it out. One of the many reasons a growing number of people opt for let to buy is the hope that the value of their existing home will rise over time.

Getting Advice

If you’re considering going for a let to buy mortgage, it is a good idea to speak to our team of advisors at Central Mortgages before you do so. If the housing market is on a downturn, or you need to move out of your current home because your job is moving, then let to buy might be something you want to consider.

Reasons for Let to Buy

At the same time, if there is an upturn in the rental market, you might be financially better off hanging on to your existing home. Very often, homeowners can get more than their monthly mortgage payments by letting to buy. Some people will choose let to buy because that enables them to raise the deposit for a second home, if there is insufficient equity in their current one.

Can I Get a Let to Buy Mortgage?

Most let to buy mortgage brokers will only consider you if there is at least 75% of the equity in your current home, and that the income from rent is 25% more than your expected mortgage repayments. Talk to us at Central Mortgages today for friendly, expert advice and information!