Let-to-Buy Mortgages 🏡👜

Picture this: you have your cozy residential property, but life throws you a curveball, and you need to move on. Enter the let-to-buy mortgage, a clever financial move that allows you to rent out your current home and tap into its equity to buy a new one (or sometimes bunk with family). 🔄💰

Here are the scenarios where let-to-buy comes to the rescue:

1. Property Stuck in Limbo: Your beloved property isn't finding any takers in the market. 😕🏠

2. Future Homecoming: You plan to return to your property eventually, but for now, you need to live elsewhere. 🏡👜

3. Investment Keeper: You see your property as a golden investment opportunity that you don't want to let go of. 🌟💼

4. Market Blues: The property's value has seen better days, and you'd rather hang on and wait for brighter times. ☀️📉

Now, let's talk logistics. The let-to-buy process involves a bit of a juggling act because you're essentially applying for two mortgages simultaneously. You'll be switching your current residential mortgage to a buy-to-let mortgage while also applying for a new residential mortgage.

Here's what you need to know:

Buy-to-Let Mortgage Considerations:

• Loan-to-Value (LTV) Caps: Your current property's LTV will be capped at around 75% of its value.
• Rental Income Assessment: Lenders will want to see rental income covering about 145% of the monthly mortgage payments.
• Income During Gaps: They'll consider your income during periods when you have no rental income.
• A Decent Deposit: You'll typically need a deposit of at least 25%, which can come from equity release. 💷🏦

Residential Mortgage Factors:

• Usual Suspects: Your income and credit score will be assessed, just like with any residential mortgage.
• Buy-to-Let Mortgage Debt: Lenders will look at how much you're borrowing on your buy-to-let mortgage.
• Juggling Act: They'll also factor in the potential rental income from your current property to ensure you can handle both mortgage payments. 🤹‍♂️💳

Managing this intricate process is crucial. A mortgage advisor with expertise in let-to-buy scenarios can be your guiding star, helping you navigate the complexities and find the best deals tailored to your unique situation. 🌠📋

Ready to explore the possibilities of let-to-buy? Let's chat and make your property dreams a reality! 🗣🏠