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Please Explain what this means- Buy to Let Mortgage .....
newtoitall
Posts: 81 Forumite
I received a written offer from EA on my house it says:-
"The Buyers have not been qualified as regards to their financial ability to proceed. We are arranging the Buyers Mortgage. We understand that the Buyer has nothing to sell but is arranging a Buy to Let Mortgage on an existing property in order to finance the purchase."
Can someone explain what this means?
Should we be asking any questions before we accept the offer?
"The Buyers have not been qualified as regards to their financial ability to proceed. We are arranging the Buyers Mortgage. We understand that the Buyer has nothing to sell but is arranging a Buy to Let Mortgage on an existing property in order to finance the purchase."
Can someone explain what this means?
Should we be asking any questions before we accept the offer?
0
Comments
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It is a mortgage designed for landlords. The LL buys a house in order to let it to tenants rather than live there himself.
This Buyer is obviously planning to rent out his current property and live in yours.
You just need to be aware that at present the Buyer has no guaranteed funds to pay you. If/when he is granted the BTL mortgage, then he will have funds.0 -
It is a mortgage designed for landlords. The LL buys a house in order to let it to tenants rather than live there himself.
This Buyer is obviously planning to rent out his current property and live in yours.
You just need to be aware that at present the Buyer has no guaranteed funds to pay you. If/when he is granted the BTL mortgage, then he will have funds.
I've just gone through the process and the mortgage product was a LET TO BUY - I'm letting out my house and releasing equity to put down as a deposit on the one I'm buying to move into.
As you've said, it merely means the LTB mortgage hasn't gone through yet and the buyer is only in the same position as someone who only has a mortgage in principle decision. TBH as long as the valuer puts the estimated rent is 130% of the interest payments on the buyers current property, its pretty much guaranteed to go through. Ours was all sorted, done and completed in 2 weeks.0
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