Let to Buy Mortgage Advice in Liverpool

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What is a let to buy mortgage?

A let to buy purchase and mortgage is the process of renting your current home, as a means of purchasing a new home for you to live in.

 

To achieve this, you will need to remortgage your home, taking it from a residential mortgage and switching it onto a new let to buy mortgage. Additionally, you will also be taking out a new mortgage on your new home.

 

Both of your mortgages will be running side by side, though they will not necessarily be with the same mortgage lender. They remain two separate entities, you’ll just need to release funds from one, in order to put down the deposit on the other.

What is the difference between let to buy mortgage and buy to let mortgage?

As you can probably ascertain from the similar sounding names, a let to buy mortgage is in fact a variation of a buy to let mortgage.

 

A buy to let in Liverpool will involve you taking out a mortgage on a property you have purchased, with a view to let it out and generate an additional income.

 

The difference between this and a let to buy mortgage in Liverpool, is that the latter usually occurs with “accidental” landlords. This situation typically comes around when you don’t plan to become a landlord at first, later changing your plans and looking to become one.

 

Rather than going through all of the stresses involved with selling your home and purchasing a new buy to let property, many homeowners will instead look at renting out their home and using the generated income as a way to pay off their new residential mortgage.

Stamp Duty Charges

You should always bear in mind the varying costs that will come with your mortgage, and this applies to taking out a let to buy in Liverpool as well. Stamp duty tax isn’t relevant for everyone, but it is worth checking this ahead of time, so that you are aware.

 

As a dedicated and trusted mortgage broker in Liverpool, one of our mortgage advisors in Liverpool will let you know every cost that is involved in your process, such as stamp duty, during your initial free mortgage appointment.

How to get a let to buy mortgage in Liverpool?

Before you can obtain a let to buy mortgage in Liverpool, you will need to be able to match the appropriate mortgage lending criteria. Your trusted mortgage advisor in Liverpool will review your circumstances during your free mortgage appointment, to determine whether or not this is right for you.

 

The criteria for qualifying for this type of mortgage, include being able to meet affordability requirements, having at least 10% deposit for your new home, as well as having 25% deposit to put down on your new let to buy mortgage in Liverpool. This can be done using the released equity from your remortgage.,

 

You will also have to be able to make a rental income that covers 125% of the mortgage payments you will have on your let to buy mortgage in Liverpool. It is recommended that you have a good credit score, though you may be able to get a let to buy mortgage in Liverpool with bad credit.

Can I get a let to buy mortgage in Liverpool with bad credit?

Because your mortgage in it’s very nature will be tied to both residential and buy to let mortgages, you can often find that let to buy mortgages in Liverpool will have much stricter mortgage lending criteria.

 

Whilst your ability to take out a mortgage can be affected by a low credit score, CCJ, default and a history of late payments, we do have a vast panel of mortgage lenders, may of whom offer specialist products, who may be able to help someone obtain a let to buy in Liverpool with bad credit.

Speak with an Expert Mortgage Broker in Liverpool

As long-standing, trusted providers of expert mortgage advice in Liverpool, we have helped a great amount of customers over the years to remortgage their home into a let to buy in Liverpool, becoming a landlord as they take the next steps in their property journey.

 

Our team of mortgage advisors in Liverpool have the ability to search through 1000s of let to buy mortgage deals, finding the perfect one for your personal and financial situation.

 

Book your free mortgage appointment to speak to a dedicated mortgage broker in Liverpool today and we will see how we can help you out.

How does it work?Get a Quote NowMeet Your Advisor

The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.

 

We search 1000s of mortgage deals across a large number of lenders, including:

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Let to Buy Mortgage Advice in Liverpool

A let to buy mortgage in Liverpool, as has been mentioned above, typically comes about when someone who owns their own home on a residential mortgage, decides to remortgage their home onto a form of buy to let in Liverpool, using released funds to put down a deposit on a new home to live in.

 

Instead of looking to sell your home and potentially finding yourself in a property chain as you try to move into your new home, taking out a let to buy mortgage in Liverpool can take off a lot of your stresses and the pressures involved in your process, also allowing you to make some money in the process.

 

Whilst there is definitely some upside to it, there are also counter points, and it’s important that you are aware of each of these. As providers of expert mortgage advice in Liverpool, we have an in-depth knowledge of these and have put together a comprehensive list of each below.

The Positives and Negatives of a Let to Buy Mortgage in Liverpool

So first of all, to review a positive point, as has been said, it can create a much less stressful environment than something like selling your home would create. Additionally, it can typically pay for its own mortgage and leave you some extra profit to enjoy.

 

Conversely to this, you will be responsible for two properties rather than one, and potentially a family as well, who can be living within your property. This can be just as stressful for you as selling a home could be; It’s not for everyone.

 

Furthermore, whilst you will have a much higher income, the interest rates for these are also much higher than taking out a regular mortgage in Liverpool would be. There are also fewer mortgage lenders with let to buy mortgage deals on offer, though thankfully we still know of plenty who could help.

 

That said, whilst residential mortgage rates will be higher, a let to buy mortgage in Liverpool may actually have much more competitive interest rates and fees than a buy to let mortgage in Liverpool perhaps would, something that could work in your favour.

 

You’ll also have to consider the value of the property. If your properties were to go up in value, you could be in profit when the time comes to sell. On the other hand, if either value dropped, you could be at a loss.

Alternatives to a Let to Buy Mortgage in Liverpool

There are various different options you could take if a let to buy mortgage in Liverpool isn’t the option for you. As an example of this, you may potentially benefit from moving into temporary or rental accommodation, so that you could take out a standard buy to let mortgage in Liverpool.

 

This can end up being quite a costly process and you also may not meet the mortgage lenders criteria for a buy to let mortgage in Liverpool. Further to this, the rental cycle can be quite a difficult one to break out of.

 

You may also have the option of consent to let. This is where a mortgage lender gives you a certain amount of time in which you can able to partake in consent to let, wherein a mortgage lender will grant you a length of time in which you can rent out your residential property, whilst you move into your new home.

 

Although this can sound fairly straightforward, this ultimately depends on your mortgage lender and it can be difficult to buy a new home whilst consent to let is currently in place.

Why choose us to help you remortgage onto a let to buy mortgage in Liverpool?  

Our open & honest mortgage advisors in Liverpool have a detailed knowledge of the mortgage world, helping many customers to become landlords with their very own let to buy in Liverpool.

 

As a trusted and respected team of expert mortgage advisors in Liverpool, we work every day of the week, from early on in the day until later at night, offering our customers convenient appointment times, subject to availability.

 

We know that it’s not always a straightforward process when obtaining a mortgage, so we’ll ensure we are always ready to answer your mortgage questions. We work for you and do our best to lower your stress levels as you take on the next step of your journey.

 

We are also able to search through 1000s of mortgage deals on your behalf. As a budding let to buy landlord looking for a let to buy mortgage in Liverpool, you want to know you’re on the best deal that is out there. It’s more than just a mortgage, you want a positive experience as a customer.

 

Book your free mortgage appointment online and speak to a dedicated mortgage advisor in Liverpool today.

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Common mortgage
questions

As your Mortgage Broker in Liverpool, our first job is to carry out a Fact Find on you to get a bigger picture of your personal and financial situation, so that we can recommend the most suitable mortgage for you. In order to obtain an Agreement in Principle, you will also need to have a credit check performed on you. Once you have provided all the relevant evidential documentation and a valuation of the property has been undertaken, a formal mortgage offer can be issued.

Your free mortgage consultation with Liverpoolmoneyman will last around an hour. After your details have been taken, a Mortgage Advisor in Liverpool will then search through thousands of mortgage deals to find a perfect matching deal for you. Once we recommend the deal, you can decide whether to proceed with us or not, it’s completely up to you!

We always recommend that you obtain an Agreement in Principle before you start viewing properties in Liverpool, as they can potentially put you in front of other buyers who don’t have one. Lenders will like the fact that you have prepared before making an offer.

An Agreement in Principle typically remains valid for between 30 and 90 days, but this can change depending on your lender. If your Agreement in Principle expires it can always be refreshed. A Mortgage Broker in Liverpool like us can usually get one sorted for you within 24 hours within your application.

Yes, you can get a second mortgage. You can take out a second mortgage for your current home for things like debt consolidation and home improvements. It is also possible to take out a second mortgage for another property if you want. Usually, this situation comes about when people are interested in a holiday home, are buying for a friend/family member or want a Let to Buy or Buy to Let.

The minimum deposit when buying a house in Liverpool with high street lenders is typically 5%. You will rarely find lenders that will accept a minimum of less than 5%. This minimum can be higher if you have had bad credit in the past.

It is possible but it can be a bit tricky though. When you have had previous credit problems your minimum deposit that is required could rise, we have seen it at 15% before. Having a Specialist Mortgage Broker in Liverpool could really help you get back on track in situations like these.

After you have proven at least one year’s accounts to your lender, you should be able to get a mortgage. Most lenders in Liverpool will use your salary plus dividend to work out your maximum mortgage, however, some can go off your net profit.

If you’re an employee, you will usually have to supply three payslips in order to prove your income. If you are Self Employed in Liverpool its normally the latest 2 years’ accounts. You will also need to produce proof of ID, address and 3 months’ bank statements.

Our free initial mortgage consultation can last up to an hour. As an experienced Mortgage Broker in Liverpool, after we have all of your information we can get you an Agreement in Principle within 24 hours or your phone call. On average, a formal mortgage offer takes about three weeks.

We make it so easy!
Our 4 step process

Step 1

A telephone call where we can take some initial details and find out about your plan of action.

Step 2

Enjoy finding a property!

Step 3

Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.

Step 4

Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.

A telephone call where we can take some initial details and find out about your plan of action.

Enjoy finding a property!

Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.

Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.

Handy quick links

Liverpoolmoneyman.com & Liverpoolmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2023 Liverpoolmoneyman

Liverpoolmoneyman, Rodney Chambers, 40 Rodney Street, Liverpool, L1 9AA.

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