Let to buy mortgages

A let to buy mortgage might be appropriate if you decide to let your current home and then buy another property to use as your home.

Let to buy mortgage lenders will assume that the rental income from the let property will cover your existing mortgage.

If you do not search out a let to buy mortgage lender then your earned income will need to cover both mortgages.

You should seek the permission of your current mortgage lender before you let the property. This permission may be refused or could be accepted subject to an increase in interest rate. 

You can remortgage your current property onto a buy to let mortgage. There are mortgages available which will enable you to remortgage free of charge. You can also release equity at the same time as you remortgage. This money could be used as a deposit against the new property. You may be able to remortgage up to 85% of value.

Mortgage lenders may require that the rent covers the mortgage payments by a certain percentage. This cover will vary with different lenders.

Some lenders will require evidence that the rental income will be sufficient. This evidence might be a copy of the tenancy agreement or a letter or statement from a letting agent giving a rental income assessment. 

Some lenders will require proof that the mortgage against the let property is a buy to let mortgage or that you have the lenders permission.

The easiest way to identify lenders that offer let to buy mortgages is to employ a mortgage broker such as Mortgages Direct.

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