Posted on 26 March 2013 by Richard
I own my property with no mortgage and looking to buy another property to move into. Can I raise a mortgage on my existing home that will be paid by the rent I receive and raise a second mortgage against my new home based on my salary ? If yes, do many lenders offer this ?
What you are looking to do is called a 'Let to Buy', whereby you capital raise on your existing property (typically 75% LTV), which would release equity to be used towards the purchase of your new home.
We can then submit a new main residence application, with the choice of lender / product, based on the rest of your personal financial situation.
Plenty of lenders will look at this type of scenario, with the actual amount of the Let to Buy mortgage based mainly on the rental income your current home is likely to generate. The new main residence is then based on your affordability, though lenders all have a slightly different way of assessing the Let to Buy mortgage in the background.
I'd recommend having an initial discussion with one of our consultants to get a better idea of exactly what we can do to get you moving into your new home. If you'd like to do so, then please let me know and I'll arrange a convenient time to speak to one.
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