LET-TO-BUY MORTGAGE

What is a let-to-buy mortgage?
A let-to-buy mortgage allows you to rent out your existing home while taking out a new residential mortgage to buy the property you want to live in. It’s a popular option for people who want to move without selling their current property.

When is let-to-buy a good option?
Let-to-buy can help if you’re struggling to sell your home, your property has dropped in value, or you want to keep it as a long-term investment. It gives you the flexibility to move without the pressure of a quick sale or the risk of selling at a loss.

How does a let-to-buy mortgage work?
If you have enough equity in your current property, you can remortgage it to release funds for the deposit on your new home. You then rent out the existing property, and the rental income is usually used to cover its mortgage payments. Your new property is paid for using your salary or other sources of income.

Who typically uses let-to-buy mortgages?
They are popular with people relocating for work, or anyone who wants to move house without selling their current home. It’s also useful for those wanting to avoid renting temporarily in a new area.

What responsibilities come with let-to-buy?
Becoming a landlord means managing tenants, maintenance, safety regulations, and legal requirements. You can handle this yourself or use a property management agent, but it’s important to be confident in your ability to meet these responsibilities.

What deposit do I need for let-to-buy?
Most lenders require around a 25% deposit on the property you plan to rent out. They’ll also want to see that the projected rental income will cover the mortgage payments.

Are there alternatives if I don’t want to rent out my property?
Yes. If you’re having trouble selling, you could consider remortgaging your home to release equity for improvements or updates. Enhancing your property may help attract buyers and potentially increase its value.

How can Arun Financial Services help?
We guide you through the let-to-buy process, explain lender requirements, and help you find the best solution based on your circumstances. Our team ensures you understand your options so you can move forward with confidence.

Your home may be repossessed if you do not keep up repayments on your mortgage.