Best Let To Buy Mortgages
How Professionals Find the Best Let To Buy Mortgages
So you want to find the best let to buy mortgages? Look no further! Here are the factors you need to consider to determine which LTB mortgages are the best. A key consideration with the best let to buy mortgages is the deposit that you will have to pay. While with buy to let this is usually between 15 per cent and 25 per cent, with a let to buy mortgage, the deposit may be as low as 10 per cent, which is similar to a deposit on a residential mortgage.
That's because with the best let to buy mortgages you are effectively releasing the equity in your old home to buy a new one to live in, while letting out your existing home. Although it is very similar to buy to let, providers of the best let to buy mortgages are usually willing to lend a bit more.
Other features to look for in the best let to buy mortgage are similar to those you would look for in BTL mortgages. For example, with the best let to buy mortgages investor landlords should check up on the rental cover requirement. That is the percentage by which rental income exceeds the interest payments on the LTB mortgage. This requirement is intended to make sure that landlords earn enough from the property to repay the mortgage and to manage the property, including paying for professional property management and any refurbishment and maintenance that might be required. With the best let-to-buy mortgages the typical rental cover starts at 100 per cent of the monthly mortgage cost, however, this rental cover can go as high as 125% or more depending on the level of equity you have in the property. To speak to someone who has expert knowledge of each lenders certain criteria, please call 0845 60 10 153.
Types of LTB Interest
Another feature of the best let to buy mortgages is the mortgage interest types. It is worth examining these carefully to choose the one that is right for your circumstances. If you are willing to live with a bit of risk and don't mind the fact that the interest rate may go up or down, then the best let to buy mortgages for you may be tracker rate mortgages. These track a certain percentage below or above the Bank of England base rate and can often be combined with an attractive initial discount.
However, this variability will not suit every landlord. For some, the best LTB mortgages will be the ones where they know exactly what their payments will be for two, three or five years, or even longer. For these landlords, the best let to buy mortgages will be the ones that offer the security of long term fixed rate deals.
Landlords with unusual financial circumstances, such as those who have a poor credit history, may have to choose a let to buy mortgage from a smaller pool of specialist lenders. There are several lenders that offer LTB mortgages to non conforming borrowers. However, these will not be the best let to buy mortgages, as the interest rates will be loaded, costing the borrowers more than standard products. This is the lenders' compensation for the perceived additional risk.
There are many lenders in the LTB market and you will want to make sure you don't miss a deal that could be right for you. That's why it's worth considering asking a broker to search for the best let to buy mortgages for you.
