We are looking to do a Let To Buy. What are our options?

Posted on 5 October 2015 by Jennifer


We want to buy a new house and do a let to buy deal to get equity from our current property quite quickly to secure a good deal on second property. We need advice and options please?I

In a let to Buy scenario, typically most lenders cap the borrowing on your current property at 75% of the value (though there are a few who do go higher), and the funds are then used towards the deposit on the new property. The loan can also sometimes be restricted by the level of rental income received, with lenders typically looking for the rent to be a minimum of 125% of the monthly payment at either the pay rate or a notional rate (say 5%).

At the same time we would then arrange a main residence mortgage for you on your new home. One of the real plus points of 'Let To Buy' is that we can choose from the whole of the mortgage for both mortgages, rather than one lender to do both.

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