If you’re looking to move into a new property but can’t sell your current home, let-to-buy is an option that you could consider.
How does let to buy work?
Letting out your current property gives you the option to move into your new property without the need to rush into selling.
If you have enough equity in your property, you could remortgage onto a let-to-buy product which would allow you to release the equity to use a deposit on a new home.
You could then let your current property out and use the rental income to cover the cost of the mortgage for that property.
This will then free your salary/other income to pay off the mortgage repayments of your new property.
Whilst some lenders will permit you to let your home out on a residential mortgage, it’s usually only a temporary allowance.
Rates for let-to-buy mortgages are usually higher than residential loans and lenders will want to see proof that the rental income will cover your mortgage repayments comfortably.
For advice on getting a let-to-buy mortgage, speak to one of our expert advisers who will be able to help you with the next steps.