Let to Buy - Help

El_tel_3

Hello,

Can anyone help me regarding let to buy please???

I currently have a fixed mortgage with Co-Op for 5 years at 5.99%. Unfortunatley they don't do 'let to buy' mortgages and have told me an option is to port my mortgage with them across to the property I want to buy and do a 'buy to let' mortgage on my house as the redemption figure for coming out of my mortgage is £2500 so would prefer to avoid that!

Problem is that I don't know 100% if this is possible financially or how long it would take etc, if its not then it's unfortunate and I'll just have to stay put as really don't want to overstretch my finances, but any help and advice would be greatly received as even if its not something I can do now, it is something I would definitely consider.

Basically the situation is that:

Seen a house that I like which is £85k.
My current house is valued at £95k and my mortgage outstanding is £67k and I think it would get about £450-£500 in rent.
My current salary is £17k with no deposit, I would include my partners salary but she is a student nurse and on a bursary so not sure if that would make much of a difference.

Thanks for looking and any help is greatly received.

Cheers,

Elliott

jenny_13

Without a deposit you'll be wanting a 100% mortgage which is not possible. Although you say you'll get £4-500 a month in rent but what about when it's empty can you afford two mortgages and being a LL isn't easy as I'm sure other people will be along to tell you. Would it not just be easier to port or is there a specific reason you don't want to?

powerwin

Which lender will provide the buy to let mortgage then? My understanding is that the buy to let mortgage market has decreased dramatically since the credit crunch, so you may have difficulty finding a buy to let mortgage from anyone. Have you seen any advertised?

Buy to let acceptance will depend on things like how easy your property will be to rent out and how easily you could deal with a period where the property is not rented.

Note, I'm not an expert.

Rgds

herbiesjp

They might not do let to buy mortgages - but have you asked them for consent to let?

Then get a new mortgage on the new property - that is a let to buy mortgage.

I doubt Co-op will allow this though

The fact you have no deposit and your partner is on a bursary will mean you have no chance of getting this agreed.

herbiesjp

powerwin wrote: »

Which lender will provide the buy to let mortgage then? My understanding is that the buy to let mortgage market has decreased dramatically since the credit crunch, so you may have difficulty finding a buy to let mortgage from anyone. Have you seen any advertised?

Buy to let acceptance will depend on things like how easy your property will be to rent out and how easily you could deal with a period where the property is not rented.

Note, I'm not an expert.

Rgds

Whilst your posts may be well intentioned, and you put your disclaimer at the end:

I'm not an expert.

Some of your posts are wrong and/or misleading.

For example BTL mortgages are still available - as long as you meet the criteria you will get one. As with mainstream deals, they are harder to get agreed currently but they are around.

BTL acceptance is based on criteria, such as expected rental income - which is different to how easily a property will let out and what to do with void periods.

You state in another post that you are learning - so IMO you should only post when you are 100% on the answer, rather than potentially giving the wrong information which could mean a poster following incorrect guidance.

powerwin

herbiesjp wrote: »

You state in another post that you are learning - so IMO you should only post when you are 100% on the answer, rather than potentially giving the wrong information which could mean a poster following incorrect guidance.

I note what you have said, and indeed, I am here to learn. As you noticed I often put in a disclaimer on my posts, to make it perfectly clear that I am not an expert. However, I would also hope/imagine that other posters understand that this is an internet forum rather than a medium for the provision of formal financial advice.

Rgds

Thrugelmir

Amongst other criteria you would need at least a 30% deposit for a buy to let mortgage in the current market.

herbiesjp

powerwin wrote: »

, I would also hope/imagine that other posters understand that this is an internet forum
Rgds

It is indeed that

But posting wrong information helps nobody

So if you don't know the answer, don't try and guess, someone else on the forum will be along and help out the OP

Sorry if it sounds harsh, but if someone follows one of your misleading comments it could end up costing them a lot of money

jet77

Totally agree with herbiesjp - don't want to be mean in anyway but there are experienced Mortgage Advisers on this forum who really help out (I know from personal experience because I was helped out when I was in a desperate situation) and although you do have a disclaimer in your posts it would be far better to learn by research, observations, experience and gaining formal qualifications rather than to give inaccurate advice to those who need help.

El_tel_3

Hi, thank you all for your help and advice it is much appreciated. As I was unsure about the process and whether it was 'do-able' but your replies have helped me alot, so thanks