Let to buy mortgage in Cheshire
If you are planning to move but are struggling to sell your property, renting it out can appear to be the perfect solution, freeing you up to make the move. However, what if the equity within your existing property is needed to part-fund your new home purchase. In such situations a let to buy mortgage may well be the answer as it releases the equity from your existing home and funds the mortgage repayments with the rental income.
If you have enough equity in your property you could remortgage using a let to buy mortgage to release some of the equity to part-fund a new home ( for the deposit for example) Your existing property is then let out with the rental income servicing the increased mortgage repayments. This can be done on an interest only basis, potentially creating additional income.
By using Let to Buy, you not only unlock the log-jam for purchasing your new home but also you do not significantly increase your monthly repayments. Here are the benefits of using a let to buy mortgage including:
Earning rent from your existing property whilst being able to purchase another.
Moving the chain process on if selling the property is proving more difficult than anticipated.
Enabling you to keep your current property as a long-term investment whilst the mortgage is paid by rental income from your tenants.
It is important to note that by doing this you will effectively be applying for two mortgages; the standard residential and a buy to let. However, these are applied for at the same time so that the lenders are aware of your current and proposed property purchases.
Making it easier to move without selling your property
At Aspire Financial Services we know which lenders to approach for this more complex scenario.
Book a free 30-minute introductory call.