We've been trying to sell for a year. Would Let To Buy be option?

Posted on 20 May 2013 by Laila

Hi. We have been trying to sell our flat, valued at £250k, for over a year and have just seen a property that meets all our criteria for £230k. Someone suggested a Let-to-Buy mortgage and I would like some advice on if this is possible. I am part-time employed £10k pa, part-time self-employed approx £5k pa. My partner is currently unemployed but he owns the flat we live in. There is only £25k mortgage outstanding here. Do you think it will be possible for us to release enough equity from the flat+ a new mortgage based on my income to borrow enough for the new property? Thanks!


Based on the initial infromation you've supplied here, then on the face of it this might be possible.

Under a 'Let to Buy', using your existing property, and subject to confirmation of the rental income likely to be generated, you can typically capital raise upto 75% of the value, which after settling the original £25,000 would release £162,500 to be used as the deposit for the new property. Most Buy To let lenders will cap the LTV at 75%, though there a few who will go slightly higher 80% or 85%LTV and it may be that we have to look at one of these.

With regards to your salary, if we can confirm £15,000 between your employed and self-employed roles, then we might be able to get enough on a residential mortgage to make this work.

Obviously we would need to know the fuller picture around your financial situation but it looks possible.

If you'd like to explore your alternatives further, then please let me know and I'll arrange to put you in touch with one of our consultants.




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