What are my options for Let to Buy?

by Readers Question

10:19 AM, 25th October 2016
About 2 years ago

What are my options for Let to Buy?

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What are my options for Let to Buy?

I read this wonderful website and it’s so helpful half of my knowledge as landlord is coming from here. So thank you to all of who contribute to this place.

I need urged advice and opinion from everyone regarding a situation in which I am at this point. I have two properties one BTL and one which is my residence. Lately I made the decision to try to rent out my house and buy another one as my main residence.

I have built up 25% percent of equity in my house so I should be able to remortgage to BTL mortgage next time. My mortgage deal is expiring in few months time so now is the time. I know that there are products like Let to Buy mortgage, but I read some articles that the government is trying to squeeze those mortgages as well like everything else apparently.

So what is the best course of action guys? I have money for new deposit, I don’t mind arranging a separately BTL mortgage on my current residence (because I have 25%equity) and another residential one for my new residence.

I can’t sell the property I tried but I didn’t get the price I wanted so it’s best to rent it out and move on. Can I arrange separately both mortgages, is that my only option?

Selling is not an option now at all, because the rental demand in my area is very good and I will make good profit on rents. Please tell me your opinion and advice how should I arrange both new mortgages for my current and next residence and in what order. Thank you so much.

Regards
Ed



Comments

Neil Patterson

10:28 AM, 25th October 2016
About 2 years ago

Hi Ed,

You are correct that the generic term for keeping your main residence property, moving out, letting it and placing a new mortgage against it is called "Let to Buy". This is not a product but just an industry description for what you are planning.

However, as the intention for this property was not originally as an investment this is not seen as a professional business decision so it falls under FCA regulation as a consumer BTL (similar regulation to buying your own main residence).

Not every lender offers "consumer" regulated BTL loans hence the question are they being squeezed out.

There are still plenty of lenders that will lend just not all.

If you would like our assistance from a qualified and regulated broker please do not hesitate to email me off line with the details and your best contact numbers npatterson@property118.com

Yes you can arrange both mortgages separately at the same time, which I would recommend as then can coordinate any issues that arise.


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