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?
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.
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance General Insurance | Valuations | Conveyancing | Wills | Home finders
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.
John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.