What is a Let To Buy Mortgage?
A Let to Buy, Cardiff Mortgage Broker, sounds like a play on words – however this is where the home that you live in is re mortgaged to a lender and product that will allow you to let the property out.
A Let to Buy follows many of the same principles a Buy to Let, however on completion of a Let to Buy, the owner is required to move out of their home. This would often be done in conjunction with an onwards purchase, thus allowing a homeowner to purchase a 2nd property.
The benefits of a Let to Buy:
- An additional income stream
- Your existing property can be retained
- Potential for capital growth of the property
- Can help to towards effective retirement planning
- More lenders have entered the market, resulting in more competitive products
- High demand for rental accommodation due to an increase in the UK population, a growing number of university students and an increase in single occupancy homes due to a high divorce rate
Your home may be repossessed if you do not keep up with repayments on your mortgage.
Think very carefully before securing debts against your home. Your mortgage is secured on your home. If you do not make your mortgage payments, you could lose your home.