Let to buy mortgages

Fair Mortgages Let to Buy Mortgage Service

Special features of what we offer include:

• Whole of market service - We can compare let to buy deals from most UK lenders

• Latest deals - Access to leading buy to let market mortgage rates

• Exclusive rates - Access to exclusive buy to let loan deals not available on the high street

• Fast turnaround - Speak to us today if you need to move quickly

• Specialist lenders - We have lenders who will consider adverse credit, complex income, unusual properties, lending in retirement and short term finance.

The essence of the Fair Mortgages service is professional, independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support. 

As your mortgage is such an important transaction, good advice is imperative.

You can call our mortgage broker team to discuss your let to buy requirements on 0117 403 4474 or request a callback. 

Let to buy mortgages

Whether you need to temporarily move due to work and you don’t want to sell your home, or the area your home is located in is currently experiencing a housing slump, let to buy mortgages could present the solution for you.

Let to buy commonly refers to a method where a borrower remortgages their home to a buy to let or a specialist ‘let to buy’ mortgage, and uses the capital raised from the remortgage for a deposit on a new property they intend to live in, meaning they will have two mortgages and two properties.

As most residential mortgages stipulate that the property cannot be let out to tenants, borrowers normally need to remortgage to a buy to let or ‘let to buy’ mortgage. Some lenders do offer ‘consent to let’ agreements. However, these are only designed to be temporary solutions for mortgage holders who need to rent out their property, and doing so would not be suitable if you need to raise capital for the deposit of your new home.

A select number of lenders offer specialist ‘let to buy’ mortgages specifically for this purpose. Buy to let and let to buy mortgages tend to have stricter lending criteria than homebuyer finance.

You may need to currently own at least 20-25% of the equity in your current home, or be able to purchase more when you remortgage, this is because buy to let mortgages tend to offer a maximum Loan to Value of around 70-75%. 

The lender may also require a professional rental valuation of your home to ensure that the monthly rental yield will be at least 145% of what the monthly mortgage payments would be.

The lender will also consider your financial income and put you through an income stress test to ensure you can afford mortgage repayments. To satisfy the lender's income stress test you will have to demonstrate that you can make mortgage payments in the event that the interest increases to 5.5%. 

Before taking out a buy to let

Becoming a landlord is not right for everyone; you should therefore carefully consider the implications of let to buy before you engage in the process. You should think about things such as whether you want to manage the property and find tenants yourself or if you feel it would be better to pay a letting agent to do so for you.

If you are considering let to buy, you could benefit from speaking to a professional and independent mortgage adviser. Not only can an adviser give you impartial advice, but they can use their expert knowledge of the market to search across lenders and try to find the products best suited to your specific circumstances.

Fair Mortgages

Fair Mortgages offers an independent mortgage advisory service, as a whole of market advisers we can search across multiple providers to try and find the best deals available. We can access specialist mortgages from lenders off of the high street, which can only be applied for via an intermediary. If you want to find out if Fair Mortgages could help you with let to buy, why not fill in our online contact form to request a call back for a free initial consultation from one of our advisers? Alternatively, you can contact us directly by calling 0117 403 4474.