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I have a £20,000 shortfall to buy my new bungalow. Could I do a Let to Buy?

Posted on 24 June 2013 by Caroline


Let To Buy. (Scotland) I have a property valued at £150,000 owned outright with no mortgage. I have £100,000 in savings and have had an offer accepted on a bungalow (missives not concluded yet, so I can still pull out of sale, but do not wish to do so). I have a shortfall of approx £20,000 to buy bungalow outright. Can I get a Let to Buy for £20,000 and rent out my present house (at £750 per month) I have just started part time self employed and cannot prove income yet.  Would a LTB/BTL mortgage be based purely on my rental and would I be able to get one based on my circumstances? Thank-you!

Caroline,

Looking at the information you've supplied, I can't see why you shouldn't be able to do a Let To Buy to make up the £20,000 shortfall to enable you to buy your bungalow. In the main the loan is based on the £750pcm rent your existing property will generate, however most lenders do like to see some level of earned income too.

If you'd like to talk to a consultant regarding your enquiry, then please let me know and I'll arrange a convenient time for one of them to contact you.

Regards,

Simon

simon.collins@johncharcol.co.uk

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