What is a let to buy mortgage?
A let to buy purchase and mortgage is where you change from living in your current home to becoming a landlord, taking on a new mortgage that allows you to take on a tenant and also buy a new home for you to live in as well.
For a homeowner to look at doing this, they will need to take out a remortgage on their home, switching it from the residential mortgage that they have had it on, to a brand new let to buy mortgage in Nottingham instead.
In addition to this, you will need a new place to live yourself and as such, will be taking out a new residential mortgage on a home that you are going to be living in. These mortgages are not tied to one another.
Both mortgages will instead be running side by side and you need to release funds from your remortgage, in order to place a deposit down on your new home. They don’t even have to be with the same mortgage lender, you just are relying on one mortgage to supply the necessary funds for the other.
What is the difference between a let to buy mortgage and buy to let mortgage?
As you can likely decipher from the virtually identical names, a let to buy mortgage is just another variation of buy to let mortgage.
A buy to let in Nottingham is the process of taking out a mortgage on a property, purely with the intention of renting out the property the mortgage is attached to, as a means to provide you with additional income.
The difference between that and taking out a let to buy mortgage in Nottingham, is that this type of process is fairly common with what we call “accidental” landlords. These are people who maybe weren’t looking to become a landlord initially, only to later decide that might be something they’d like to do.
Instead of taking on all of the stresses that are usually included with selling a home and purchasing a new buy to let in Nottingham, often homeowners will take the route of just renting out their once home, using the income generated to pay off the balance of a new residential mortgage that they have taken out on a new home.
Stamp Duty Charges
You should always prepare for the likely stamp duty land tax costs that are to be involved with taking out a mortgage, especially for a buy to let or let to buy in Nottingham. Stamp duty doesn’t necessarily count for every property owner, so it is best to do research ahead of time.
As an trusted and reliable mortgage broker in Nottingham, one of our hard working mortgage advisors in Nottingham will make sure that you know every cost involved in your let to buy mortgage process, including stamp duty, during your free mortgage appointment. You can book in for one of these using the enquire online button on our website.
How to get a let to buy mortgage in Nottingham?
In order for a property owner to take out a let to buy mortgage in Nottingham, you will need to ensure that you are able to match up to the strict mortgage lending criteria. Your trusted mortgage advisor in Nottingham will take a look at your information during your free mortgage appointment, to determine whether or not it is a viable option for you.
The typical qualifying criteria that you need to meet for a let to buy in Nottingham include, meeting all of the affordability requirements for your new home, having at least a 10% deposit to put down for the new home, as well as a 25% deposit to put down for your new buy to let mortgage (this can be equity that you have released during the remortgage stage).
You will also need to be able to cover 125% of the payments you now have for your new buy to let in Nottingham, which will be achieved using the rental income you generate. A good credit score will also be recommended, though you could possibly obtain a let to buy mortgage if you were struggling with bad credit.
Can I get a let to buy mortgage in Nottingham with bad credit?
Because the process of let to buy in Nottingham is tied to taking out both a residential and buy to let mortgage, you may find that you will have much stricter mortgage lending criteria to match up to.
Whilst you may indeed have a low credit score, CCJ, default and a history of late payments, and other aspects that could hurt your chances of getting a mortgage, we do have a variety of specialist mortgage lenders on panel who may be able to help you out, depending on your situation.
Speak with an Expert Mortgage Broker in Nottingham
As fast & friendly providers of expert let to buy mortgage advice in Nottingham, we have helped a large amount of customers to remortgage their property over the years, helping them to switch it from a residential mortgage, on to a let to buy mortgage in Nottingham.
Our dedicated and hard working team of mortgage advisors in Nottingham are able to take a look through 1000s of let to buy mortgage deals, finding the most appropriate one for the mortgage circumstances you have.
Book your free mortgage appointment and speak with an expert mortgage broker in Nottingham today and we will see how we can possibly help you.
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The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.