Let to Buy? What's the catch?

Windsorcastle

I've just spoken to a financial advisor about Let To Buy, which I'd never heard of before. So basically, he tells me I can carry on letting out my flat and release teh equity to buy a new place closer to work. Sounds great so - what's the catch? The main thing I cvan think of is just being liable for 2 mortgages in teh event of a rent void, but what else?

Anyone with any experience of this? Thanks.

Mrs_Z

Catch?

Well, you don't say which type of mortgage you have, but I'm assuming that at the moment you have a residential mortgage with a consent to let from your lender?

If you were to do a let to buy, you'd get a commercial morgage which tend to have higher fees as well as interest rates.

Second thing; you'll have the legal responsibilities of a landlord, but presumably you're aware of them already as you are already letting your flat.

betmunch

If you are aware of your responsibilities as a landlord then thats it really.

Some people did Let to Buy without realising the trouble that the Let could cause and they came unstuck.

Windsorcastle

Yes, I currently have a residential mortgage with permission to let. So from these answers, my concerns would be that I would be put onto a commercial mortgage ata higher interest rate, and then of course would also have teh responsibility for 2 mortgages, in the event of a tenancy void. Plus I would still have to have a certain amount of money available for repairs and emergencies etc at the rental property. So it sounds good in principle but I think might be a bit risky if I don't have much money to spare to cover eventualities at the rented place.

Thanks very much for the responses :-)