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Let To Buy

Thinking of moving to a new home but want to keep your current home and rent it out?

*As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
*A buy to let mortgage will be secured against your property. Some types of buy to let mortgages are not regulated by the Financial Conduct Authority.

This method is known as a Let to Buy Mortgage.

A Let to Buy mortgage can make the house-buying process smoother, as you are not relying on someone to purchase your home before you can start looking for your next home purchase.

Although Buy to Let and Let to Buy may sound similar, in reality, there are some differences.  When purchasing a Buy to Let, this is purely for investment purposes only whereas Let to Buy, is where you purchased your home with the intention to live but you have now decided to rent out.

There are many factors to consider when completing this type of mortgage transaction, which is why it is best to speak to one of our Resolute advisors. With our wealth of knowledge & experience, we can determine if this is the right path for you.

Let To Buy - Resolute Mortgages - Claydon, Ipswich

Things to consider.

Depending on your current mortgage status, you will either need to gain the lender’s permission before you start the process or look to remortgage your property onto a Buy to Let mortgage.

This is a niche market, and each lender will have different criteria and minimum requirements before proceeding.  This is why speaking to someone who has experience in this area can save time and offer you a tailored recommendation.

In the current market, residential mortgage deals are much more desirable compared to the Buy to let mortgages available.  We can review your current circumstances and be sure that keeping your home is a good financial step forward.

You will now have the responsibility of becoming a landlord.  There are minimum requirements the property needs to meet before being let and costs involved. More information about being a landlord can be found on the buy-to-let section of our website.

By keeping your current home, you may now be liable for increased stamp duty on your next home purchase. This is because you will now own more than one property.

There will be tax aspects you need to consider and full advice on this area can be given by a professional tax advice specialist.   Also be mindful that when you come to sell the let to buy property, you could be liable for capital gains tax, should any gains be made on the property.

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