Let to Buy mortgage

herbiesjp

scooby-dog wrote: »

If you do a let to buy it is based on potential RENTAL income?

That is incorrect

A Let to buy, is the mortgage on the property that you are buying to then move into as your main residence.

As such, it is based on your incomes.

silvercar

Bottom line is that the mortgage on the property you are letting out will be based in rental income and the mortgage on the property you are going to live in will be based on income.

yerweegranny

Have just been discussing Let-to-Buy- thought I would check out if there was anything at all on MSE website - and here it all is !!! I have learned more in the last 10 minutes reading this thread than several nights trawling the web... I am interested in this because my son has a flat in a great location (15 mins from Scottish Parliament) but wishes to move up to a house. I would like to do this jointly with him if that is possible (any suggestions welcome on that) - but if he is a bit nervous about it I would "go it alone" Only drawback is - ssshhh age ! - (clue is in the name I guess). I have around £50K equity in own home and another 10 years to work..... am I being silly, going for this kinda thing so late?

scooby-dog

That is incorrect

A Let to buy, is the mortgage on the property that you are buying to then move into as your main residence.

As such, it is based on your incomes.




Regarding the above - now I'm really lost. I was under the impression that if the rental value of our current house was say at £1k per month, we could organise a let to buy on it and take out a mortgage against this property for say £195k. We then have this money to use to buy another property or as a deposit for another property???? The above says that a let to but is the mortgage on the new property you are to live in?? Surely not??
If we were simply to remortgage current house to fund another then that would be based on salary.
Some one please clarify!!!!!

kingkano

I think having considered this alot more, let-to-buy is a misnomer. There isnt a specific mortgage involved. But basically you just 'let' your current property (complete with its current mortgage) - thereby enabling you to 'buy' a new house on a new mortgage as if you had no other mortgages. Let-to-buy is just a phrase for removing your current mortgage from the equations I guess.

If you need further money etc you will want a buy-to-let mortgage, or a residential mortgage which you will be allowed permission to let the property out (this could be your current mortgage with a further advance).

Hope that helps clarify matters.

I can only imagine where there is a specific product called let-to-buy its just aimed at people doing this....

silvercar

If you are letting out your current home you either get consent to lease on the existing mortgage or you take out a buy-to-let remortgage on it. The BTL remortgage would be based on rental income, if you increased the current mortgage with consent to lease, the lending criteria would again be based on expected rental income.

The new mortgage on what will be your new residential home will be based on your salary. Lenders may look at the existing home either because you will have extra rental income over and above the mortgage payments and you need that income to boost the numbers for your residential mortgage or some of your income needs to subsidise the rental income on your ex-homes mortgage.

A let to buy mortgage is just a marketing name to encourage you through the lender's door. I bought out a house to complete a chain, so was that a buy-to-let-to-buy mortgage?