Everyone has heard of buy-to-let but not many people know about its mirror image product, let-to-buy.
This mortgage option is usually used by homeowners who need to move but are either struggling to sell their current property or in many cases, simply don’t want to.
Let-to-buy is when a home owner lets out the property they currently live in, so that they can purchase a new residential property. It allows them to take advantage of the current high-demand for rental properties and the high rents tenants are willing to pay, and also means that they own two homes. Therefore, they are able to benefit from the property price growth on two properties.
This product has grown in popularity in recent years with those who wish to move away temporarily, but plan to return back to their property in the future. But even though more people are utilising this product, it remains relatively unknown or misunderstood.
Let-to-buy is a complex process, in theory you are purchasing two new mortgages – a residential and buy-to-let, but the benefits it can offer are worth it for the right situations.
As many lenders want straightforward cases, if you go to them with the purpose of let-to-buy you may find it difficult as they won’t want the extra hassle. We highly recommend going through an experienced, independent mortgage broker, such as ourselves, to help arrange the deal on your behalf and ensure you are getting the best deal.
First Financial Solutions pride ourselves on offering first class advice and working with complex scenarios. If you would like to discuss let-to-buy further, please don’t hesitate to get in touch. Call us on 01639 262222 or click here to contact us.