UNITED KINGDOM – 17 Mar, 2017 – Those who already have their own property may be considered lucky by those who are still planning to buy property of their own, but what if a property owner would like to purchase new property altogether, but cannot sell their existing property? This is where a mortgage arrangement referred to as a ‘let to buy’ mortgage comes in.
The let to buy mortgage, as financial advisors from Open Vision Finance explain, is a mortgage arrangement wherein current property owners can let their existing property so that they can purchase an entirely new property where they can live and reside. This type of arrangement may be inherently useful for those property owners who would like to sell their property in order to buy a new one, but cannot do so either due to the economic climate or through a lack of buyers. Instead of selling their property outright, the homeowner can simply choose to let it out – and the income they receive from letting out their current property can then be used to get a new mortgage for a new piece of property where they can live.
As Open Vision Finance explains in further detail, “With a let to buy mortgage you effectively replace your existing residential mortgage on the property with the new let to buy mortgage, allowing you to rent your property and use your income to get a new residential mortgage on a new home. As with a buy to let mortgage, the lenders will calculate the loan amount to be sufficient based on the potential rental income to be received and there needs to be a minimum of 25% deposit.”
The option of let to buy, as Open Vision Finance attests, may be an ideal alternative for those who would like to get a new property but who cannot – or will not – sell their current home. But, as with other mortgages, homeowners wanting to take advantage of this type of mortgage need to be aware of the exact details and requirements. For instance, the rental income to be received for the existing property needs to be able to cover the mortgage payments by at least 125 percent.
For further details, visit the Open Vision Finance website.
Open Vision Finance is an established financial services provider specialising in mortgages, insurance, home moving services, and more.
To learn more about Bristol mortgages online, visit the website.
Company Name: Open Vision Finance
Contact Person: Justin Phillips
Phone: 01278 455779
Address:41 High Street
Country: United Kingdom