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I have an unencumbered property, can I do a Let To Buy?

Posted on 15 May 2013 by Gwen


I own a property valued at £300K with no mortgage, and have accessible savings of £200k. The property is one of many in the area taking a long time to sell. Am I likely to be able to go the let--to-buy route?

Gwen,

In principle there shouldn't be an obvious reason why you couldn't look at going down the Let to Buy route. Typically and subject to the rental income likely to be generated, most lenders will allow you to raise a mortgage upto 75% of your current property's value. This would allow you to release £225,000 from your existing home to be inconjunction with your savings to be used as a deposit for your new main residence.

I don't whether you would still need a mortgage on your your new home, but if you do then that would be subject to the standard lending and affordability criteria of the lender we would look to use.

There are a lot of options in the market for those borrwoers looking at Let to Buy, so I do think it's worth having an initial discussion with one of our consultants.

If you'd like to do so, then please let me know and I'll arrange to put you in touch with one of them.

Regards,

Simon

simon.collins@johncharcol.co.uk

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