Let to Buy Mortgages can be complex and difficult to obtain By Chris Morgan …
There could be many reasons that you could decide to let your existing property and move into to a different one. Both before and during the last recession it became very popular for a person to leverage their current home and then move into a different one.
For some this was an absolute necessity to keep a larger home in London, so they therefore considered downsizing and reducing their outgoings. For others who simply did not wish to sell their property in a difficult market, Let to Buy became a good way to keep ownership of their home.
Let To Buy mortgages effectively are reliant on two mortgage loans being agreed at the same time, in majority of cases by different lenders. One loan to release capital from the current property (Letting Mortgage) and a second to buy an ongoing property (Residential Mortgage).
It’s not a surprise that these types of deals have become difficult to complete, as many of the major lending groups are once again restricting their lending policies ahead of Brexit.
However, there are still some very good lenders willing consider “Let to Buy” situations where the financial number and circumstances make sense.
Here’s some advice for those looking to “Let and Buy” …
- If you have been turned down on this type of deal already, then don’t automatically think the issues lie with you, as it is quite possible that the lenders policy has changed or is restricted.
- Some lenders simply do not have sufficient funds to lend “Multiple Finance” deals at the moment and will turn them down before even accepting an application from a borrower.
- Any onward residential purchase will need to be simultaneous for any lender to agree a Let to Buy Mortgage. This is not normally negotiable.
- In any economic financial cycle there are weaker mortgage providers that restrict lending and there are stronger ones that are in a better position to lend – it’s just a matter of knowing who to approach, their detailed criteria and how to present the situation.
- Let to Buy Mortgages are complex, so seek Independent Financial Advice and your dream home move or downsizing may still be possible – presentation is everything.
15 Minute Mortgage Assessment
Unusual Mortgages offer a 15 minute free mortgage assessment over the phone for anyone that has been turned down for a mortgage elsewhere. We will confirm if the decision you were given is correct and assess your options across all of the lenders on our manual research list, from which we tailor bespoke solutions for our clients.
If you have been turned down for a mortgage or are worried about approaching lenders due to the way you have been treated in the past, why not give us a call. Within 15 minutes you will know if your hopes and aspirations are a reality, with a sound opinion from the most experienced mortgage broker in the United Kingdom at placing “Unusual Mortgages”.
If you require more information on Complex Mortgages, Multiples Mortgages, Buy to let, Self Employed or Adverse Credit Mortgages you can contact Unusual Mortgages on UK 0845 474 3075 or International +44 1404 45397, email at enquiries@unusualmortgages.co.uk