Let-to-buy mortgage

DragonDosh

Hi,
Can anyone recommend any providers of let-to-buy mortgages? I own my property mortgage free and want to rent it out, using the rental income (less fees etc) to pay, or substanitially contribute to, a mortgage on another property.

Ideally I want to avoid a buy-to-let re-mortgage as this is largely based on the value of the current property and means a hefty deposit on the next one, whereas I want the mortgage to be based on what I can afford per month from the rental income.

I know buy-to-let exists as a means of borrowing, but isn't well-known/provided in the high street. I've found a few companies on the internet to investigate, plus I know about UCB homeloans, but if anyone can recommend anyone specific - either to use or avoid - that would be very useful.

Thanks!

herbiesjp

You can only have a let to buy mortgage - if you want to let out your currently mortgaged residential property, and have that mortgage commitment disregarded for the new loan. The are plenty of lenders that can offer this mortgage.

However I'm not sure it fits with your situation.

You will let out the unencumbered property and but a new property? Will you then move into the new property? If so, you do not need a let to buy or buy to let.

If you are going to let out the new property, you will have to get a buy to let, as a) a let to buy would work here and b) if you are not living there you would have to legally get a buy to let.

All BTLs are based on the rental income (with a few exceptions) and most lenders will want some form of minimal income.

Let me know if i have not understood your post properly

payless

The way I read it, is you are looking at a new mtg, which you feel is greater than your income with cover, and hence looking at a lender who will take ( at the moment only potential) rental income into account.

Assuming you have an earned income, you may be surprised on what lender might lend against it anyway ( and you seem to have potential rental income to fall back on if seems a bit high)