• You’ll need to have a decent deposit or amount of equity in the house, with lenders usually requesting a loan to value (LTV) of 75%.
• You will also need to show that the expected rental income is acceptable for the new lender as they will want to see you can account for rental voids and maintenance costs. It may be a good idea to speak to local letting agents to get an idea of the monthly rents for similar properties in the area.
• Consider the implications of being a landlord such as insurance responsibilities, property maintenance but also tax and legal implications.
• You will have to pay a stamp duty surcharge when you buy a second property so ensure this has been factored into your calculations.
How can Fairview Financial help you with a Let to Buy mortgage?
When proceeding with a Let to Buy, the rental mortgage and the new residential mortgage are both arranged at the same time. Seeking advice from an experienced mortgage broker like Fairview Financial is important in managing a complex process like this. We have great expertise in this area and we will offer you guidance and support from application to completion.
You will also be happy to hear that we do not charge a fee for remortgages and since the Let to Buy is classed as a remortgage, you will not have to pay any broker fees for our advice.
We are a whole of market mortgage broker who will search thousands of deals to find you the right let to buy mortgage option. Not all lenders are happy to lend on a Let to Buy basis and some of those that do will only deal with brokers, not directly with customers.
Fairview Financial guarantees honest and unbiased advice. Our professional service has received exceptional feedback from numerous satisfied clients. We are based in the heart of the Cotsowlds, with our office conveniently located on The Promenade in Cheltenham but we operate throughout the whole of the South West so wherever you may be we can offer a personal service tailored to your individual requirements.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.