Create Property Wealth
Navigating the Buy to Let Journey with Mellow
A Let to Buy mortgage is when you let out your current home and replace your existing residential mortgage with a Buy to Let mortgage and then take a new residential mortgage on your new main residence or even port the existing mortgage to the new home to avoid early repayment charges and do a top-up mortgage with the same lender.
At Mellow Financial, we simplify your path to a let-to-buy mortgage with our tailored solutions. Enjoy competitive rates and an easy application process, with up to 75% LTV and 25% equity left in your current home. Plus, our nationwide service means expert advice is just a call away!
For most investors this is how their Buy to Let journey started. After a few moves they may have 2 or 3 properties that were once their home that are now Let to Buys.
With each move they have built up a small portfolio of Buy to Let properties.
There are many considerations before this can be a viable option and expert mortgage advice is required. Properties that you once occupied fall under a different set of rules known as Consumer Buy to Lets i.e. accidental landlords and not all lenders accept these cases. Of the ones that do there are strict guidelines as to what is acceptable. Quite often tax advice is essential as becoming a property owner has its own complications and the right structure now can pay dividends in the future. Wealth and inheritance tax planning should be done as early as possible into the BTL journey.
Our team is dedicated to guiding you through every step of the process.
Feel free to call us at 01172 510544 or arrange a call with one of our experts in Let to Buy Mortgages to schedule your complimentary initial consultation.
You can trust us to help you navigate your limited company let to buy mortgage with confidence.
Let to Buy FAQs
What is a Let to Buy mortgage?
A Let to Buy mortgage allows homeowners to let out their current property and purchase a new home to live in. This can be a good option if you’re relocating but want to keep your current property as a long-term investment or if you’re struggling to sell. Essentially, you’ll have two mortgages: one for the Let to Buy property and another for your new residential home.
Can I get a Let to Buy mortgage if I have an existing residential mortgage?
Yes, but your current residential mortgage will need to be converted to a Let to Buy mortgage, which allows you to legally rent out your property. You’ll also need to apply for a separate mortgage for your new home. Lenders will assess both properties’ affordability, factoring in rental income from your current home.
Do I need a large deposit for a Let to Buy mortgage?
You’ll typically need at least 25% equity in your current property to qualify for a Let to Buy mortgage. For your new home, deposit requirements will depend on the type of residential mortgage you choose, but saving a larger deposit may give you access to better rates.
What are the benefits of a Let to Buy mortgage?
Let to Buy allows you to move without selling your current home, enabling you to benefit from potential rental income and long-term property appreciation. It’s also a flexible solution if the property market isn’t favourable for selling. You can retain your home as an asset while relocating to your new residence.
How is rental income assessed for a Let to Buy mortgage?
ARRANGE A CALLLenders calculate the affordability of your Let to Buy mortgage by considering the projected rental income from your current property. They typically expect this rental income to cover 125-145% of the mortgage payments. Your personal income may also be reviewed to assess your overall financial stability.
Meet The Advisers
Mellow Financial Ltd is registered with the Data Protection Act 1998 registration No. ZB649453 and is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 1011568 an Appointed Representative of TMG Direct Limited which is authorised and regulated by the Financial Conduct Authority under Firm Reference Number: 786245 and registered with the Data Protection Act 1998 Registration No: ZA178200.
Think carefully before securing debts against your home. Your home may be re possessed if you do not keep up repayments on a mortgage or any other debt secured on it. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.