Let-to-Buy Mortgages in Colchester: Keep Your Home, Buy Another
Discover how Let-to-Buy mortgages work in Colchester and how to transition from homeowner to landlord.
Let-to-Buy Mortgages in Colchester: Keep Your Home, Buy Another
What is a Let-to-Buy Mortgage?
A let-to-buy mortgage enables you to remortgage your existing home to release equity, which you can then use as a deposit on a new residential property. You’ll rent out your current home, while moving into your new one.
It’s different from a buy-to-let mortgage, which is usually for people purchasing property solely for investment. In a let-to-buy arrangement, you become both a landlord and a homeowner simultaneously.
Who Might Consider a Let-to-Buy Mortgage?
This type of mortgage is popular among homeowners who:
- Want to keep their existing property for long-term investment
- Are relocating for work but plan to return
- Are moving in with a partner and keeping their own home
If any of these sound like your situation, speaking to a mortgage advisor in Colchester can help you assess your options.
Eligibility and Considerations
Rental Income
Lenders will typically want to see that your existing property can generate enough rental income to cover the mortgage payments, usually 125–145% of the monthly repayment.
Equity in Your Current Property
You’ll need sufficient equity in your current home to remortgage and put down a deposit for the new property—often 15% or more.
Affordability Checks
As with any mortgage, lenders will assess your income, outgoings, and credit history. It’s best to get tailored advice from a mortgage advisor in Colchester who understands local lending criteria.
Benefits of Let-to-Buy Mortgages
- You keep your existing home as an investment
- Gain flexibility in the housing market
- Potential for future rental income and capital growth
Is Let-to-Buy Right for You?
If you’re financially stable, have sufficient equity, and your current home is suitable for letting, a let-to-buy mortgage could be a smart move. However, there are risks involved—like void rental periods or changing interest rates—so it’s essential to weigh your options carefully.
To get clear advice tailored to your circumstances, contact our experienced mortgage advisors in Colchester for guidance.
Let Fosters Financial Help
At Fosters Financial, we have helped many clients secure a let-to-buy mortgage in Colchester. We understand the complexities of this unique setup and work closely with lenders to find the best solution for your situation.
Start Your Let-to-Buy Journey Today
Thinking about keeping your current property while buying a new one? Let’s chat. Book a free consultation with one of our expert mortgage advisors today.
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