Let to Buy Mortgage

Speak to an Expert Advisor

or

Let us Look Into The Best Rates

Why Choose Us

0 %
5-star reviews on Google
0
years we have been as independent mortgage and protection brokers
0 %
customer satisfaction for finding the best deals on the UK market
£ 0
total donated to various charities

Why Choose Us

0 %
5-star reviews on Google
£ 0
total donated to various charities
0
years we have been as independent mortgage and protection brokers
0 %
customer satisfaction for finding the best deals on the UK market

The Let to Buy mortgage refers to the owner “letting” his current property out, in order to “buy” another property in which to live. This requires 2 mortgages. It requires the original property being transferred on to a mortgage which allows the owner to rent the property out. The owner will then be able to take out a new mortgage on the house he wishes to buy and live in (his new owner-occupied property). It may sound complicated, but in fact it is not, and it is becoming a lot more common practice in a slow housing market. This method of moving has many advantages to those who are able to do so.

What Our Clients Say About Us

5.0 Based on 122 reviews from review us onLucy B. ★★★★★ Having Phil as my mortgage advisor was great from the very start! He is down to earth and speaking to him was always a pleasure. The kindness, compassion and support I have been given all the way through what can be a stressful process was immeasurable. Phil and Jardelle worked as a solid team and was able to make me feel at ease all the way through buying my first home. The team were always available and the communication between everyone was always clear and I felt safe in the hands of the company as a whole. Thank you for helping me buy my first home!Flora R. ★★★★★ I worked with Richard (Protection Adviser) for a couple of days to sort out life and critical illness insurance. Absolutely brilliant, he found me and my husband the perfect policy. Very knowledgeable and easy to get on, he definetely makes things easy to understand. Thank you for the great service provided.Matthew R. ★★★★★ I've dealt with Phil at Ascot Mortgages for a while now and Phil always comes back back to me with the right plan.Keep the good work up!rafal W. ★★★★★ I would thoroughly recommend Phil Greenwood at Ascot Mortgages ltd to anyone looking to seek advice on purchasing a home.Phil was absolutely fantastic. He made the process very smooth and easy and was always there to answer any questions I had.Shahid L. ★★★★★ This company has been truly amazing in constantly giving me the support and help i need for my mortgage and for their continuous work ethic guiding customers like myself and educating them into making the best possible decisions. My special mention goes to Phil Greenwood who deserves every single credit for his brilliant work and communication skills. The more I got to work with Phil, the more he gained my respect as he is a hugely likeable man and possibly the best mortgage advisor yet. Even after I finished my time with Ascot Mortgages, I will never lose my trust in the company and I hope they exceed their business and gain even more success and popularity.Best wishes,Shahid Latif and familyPretty L. ★★★★★ Phil helped me renew my mortgage. He was great at keeping me updated with any rate changes and secured a lower rate than at the time my mortgage went through. Thank you Ascot for your supportNikki E. ★★★★★ Huge thanks to Richard Johnson for sorting out all of my insurance policies! I had accumulated a variety of life cover and various other policies over the years that all needed a good review and refresh. Richard was extremely patient and helped me to remove the duplication and choose the best cover to suit our current needs. I have used Ascot Mortgages for over 12 years and have met several members of the team, always finding the right help and support to work through what can be a complicated and stressful time. Thanks again, Richard!Aamir R. ★★★★★ As first time buyers we had very little understanding of how to go about applying for a mortgage. Phil was so helpful in cutting through all of the formalities and helping us to decide which mortgage would be best for us also ensured we collated all the details needed and kept us up to date on progress. The process of finding the right house was very stressful but the process of choosing and applying for the mortgage and life cover has been so straight forward that, at times, we were worried it was all a bit too smooth! Thank you for guiding us through this so professionally and with real understanding and personality.Andrew T. ★★★★★ Working with Richard at Ascot has been a great experience. He listened to us and was very professional throughout. This was our first experience with Richard but we've been using Ascot now for 6-7 years. Thank you all at AscotAngie B. ★★★★★ Always give a great service and find you a mortgage in a timely fashion.Alison is awesomeAndrew M. ★★★★★ We have used Ascot Mortgages for over 5 years now and have had excellent service throughout, primarily with Alison and Kevin. Our latest dealings have been with Richard Johnson who although new to us (and to Ascot I believe) has once again provided the 5 star level of service we have come to expect. His product knowledge is excellent offering a range of options supported with consistent communication and updates, always available on the phone or on email every step of the way.Ali H ★★★★★ Excellent service, a big thanks to Natalia Barry for her excellent support with my buy to let mortgage application, Natalia was professional, transparent, and kept me informed during all the process, and thanks to Jason jones for his assistance and support.david R. ★★★★★ I have dealt with Ascot for many years now and will always go back, recently had all my insurances re done by Richard Johnston at the firm, excellent service, communication and swift actions by Richard. Great deals on all three insurances and would recommend anybody to go to Richard for help. Thanks Richard 👍Eve Alexandra C. ★★★★★ We used Ascot Mortgages to purchase a home as first time buyers, Ellie assisted us with this and went above and beyond to ensure everything went smoothly, all questions were answered, and any queries were solved.As first time buyers, myself and my partner were quite nervous and clueless as to what to expect when getting a mortgage and what not, and Ellie made this so simple and explained everything in a way that we thoroughly understood what was happening with our house buying journey, without it being pure jargon.I can't thank Ellie enough, she truly has been a star during the whole experience and is an asset to Ascot Mortgages.She is someone who I would definitely recommend to friends and family if the opportunity arises, and has made this whole experience a very stress free and exciting one!Thank you for everything Ellie!Emma W. ★★★★★ Alison helped me to get the right mortgage for my current situation and was very supportivehelen L. ★★★★★ Phil Greenwood dealt with my recent remortgage, he made sure I had the best product to fit our HMO criteria. Then chased solicitors for me and made sure I completed around the date I wanted to avoid my ridiculous rate I was about to be switched to. Thanks Phil, great job! Ready for my next mortgage now so I will be coming back 🙂Mark C ★★★★★ Excellent service from an excellent representative. Very professional and helpful company. Thank you for all your helpDamian L. ★★★★★ I recently purchased a buy-to-let from Auction and Ascot Mortgages, in tandem with Ascot Bridging Finance, supported me through the whole process. Once the property purchase via a bridging loan was complete, Ascot Mortgages worked out the best options for me, despite the Banks rising interest rates and spiralling UK inflation and managed to secure me a competitive mortgage rate for that property. I wouldn't hesitate in going back to Ascot Mortgages in the future and look forward to working with them again in the near future. Thank you for everything you've doneJuliet B. ★★★★★ Thank you to Alison for helping us and sorting out our mortgage. Swift, reliable and very helpful. Very much appreciated. God bless you abundantly 👍👌🤝gareth P. ★★★★★ Been with Alison and team for more than 25 years. Needless to say, very happy...Jo T. ★★★★★ We have been using Ascot Mortgages for the last few years and they have done 11 buy to let products for us.We have found Alison, Phil, Jason, Jardelle and the team to be excellent at finding the best product for us and to work at pace when we are buying from auction and have a deadline to meet.Communication is very good and nothing is too much troubleBen H. ★★★★★ I can't recommend Ascot Mortgages highly enough.We have used them for all of our Mortgages . They are professional and friendly and have walked us through all our options, they always have the time to talk to you and go the extra mile to get you the best deal. It wont be long till I'm calling on their services again, I wouldn't go anywhere else.If you want a mortgage, there's only one place to go!Dog J. ★★★★★ Ascot went the extra mile to help me acquire a mortgage. With the help of Jason and Ellie I was able to get a competitive rate after 3 other firms had told me they couldn't help me. Great levels of communication throughout, I would highly recommend!Ursula B. ★★★★★ Alison was very friendly and professional in securing the right bridging for us and at a very competative price. This ensured that we were able to place an immediate offer and not miss out on our forever home. Later her help and support in finally getting our completion over the line was nothing short of a miracle. I would strongly recommend both Alison and the team at Ascot Mortgages.primrose C. ★★★★★ ALISON IS BY FAR THE BEST IN THE GAME. ALL WE CAN SAY IS THANK YOU SO MUCH. They are passionate on customer service, even in my frustrated time Alison, Jadelle, Ellie I could name them all. May the good LORD BLESS YOU.js_loader

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

05.10.2023

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

05.10.2023

Considering a let to buy mortgage?

When you buy your property, you probably picked it based on a number of criteria. These might have included location, local amenities, the property’s design and certainly price. It was likely to have also included considerations around your lifestyle- where you worked and the size of your family.
What happens if you are offered a new job, at the other end of the country? You will probably look to sell your property and move to one that is more suitable. But in today’s slow housing market, what if the property doesn’t sell? What if you know the property is only able to sell for a reduced price? Your answer could lie in a let-to-buy mortgage, which will finance the purchase of your new property. This will give you the flexibility to either wait for the property to sell, or allow you to keep it.

Mortgage Repayment Calculator

Let to buy mortgage criteria

This type of mortgages is geared specifically for those who have a mortgage already, but have ended up needing to move house and are unable or would prefer not to sell their current property, instead renting it out to tenants.

Are they a popular choice?

Increasingly so- a combination of a slow housing market and people often needing to relocate to find work, have meant that these mortgages are tailored to this particular market.

What can I do with my existing property whilst I live in the new one?

With this type of mortgage, it is designed for you to be able to rent the existing property out, to cover that mortgage. This means that you are able to enjoy the benefits of having a tenant in your property, without having to gain a buy-to-let mortgage or change your existing mortgage arrangement. Is it not better for me to rent a new house, until my current one sells?

With let to buy mortgages, which are increasing in popularity, it is likely that the rental yield that you will obtain is higher than your mortgage payments. The same applies if you were to rent- it is likely to cost more than a mortgage for a similar sized property. Therefore, as these types of mortgage are more popular, and thus more competitive, they are designed to make sure that you do not lose money by renting the original property out whilst buying a new one.

Are there any other benefits to a let to buy mortgage?

One of the main benefits is that you get to retain ownership for the property, for as long as you need. This means that you can benefit from any increases in value, which you may lose by selling immediately, or for a reduced price to get a quicker sale. Of course, you also have the option to move back to the property at a later date, if you decide not to sell it at all.

How to find the best value let to buy mortgages

There will be a deposit required, but because you have a current mortgage you can use any equity to refund it. This means that you do not need to be in a position of trying to find a deposit of between 10 and 20 percent of the property’s value, on top of paying your existing mortgage.

Ascot Mortgages are market leaders, well-established buy to let brokers, who can work with our network of lenders to find you a bespoke let to buy mortgage, which suits your needs. We pride ourselves on our honesty, knowledge and efficiency and aim to find you the best offer. We provide an initial free and no obligation consultation in which we can discuss your needs and advise you accordingly. Our fully trained staff will speak to you and determine the best course of action. The following information also provides some key points about let to buy mortgages, what to expect if you are looking to take one out, and what you should look for in order to get the best deal. Of course, speaking to us here at Ascot Mortgages will ensure that you get the best deal, efficiently and with the minimum hassle!

Alison Gibson

Ascot Mortgage Expert

Remortgage

Remortgaging is applied when you keep

living in your present property while applying for another mortgage deal with a new lender. Before finding out how to remortgage and get the best offers from experts like Ascot Mortgages, you have to check meeting what parameters of the deal that can help you succeed the most. The range of background factors varies a lot — from the recently changed loan-to-value ratio or your existing agreement coming to an end.

Whether you are trying to get a more beneficial deal or searching for funding to improve your home conditions, remortgaging is one of the most advantageous scenarios to consider.

Buy to let early repayment charges (redemption penalties)

Early repayment charges (redemption penalties) are usually the amount that a lender charges when the mortgage is repaid early, before the term which was initially arranged. It usually is highest the earlier that the mortgage is paid off. They are usually calculated by:

  • The percentage of the original loan value
  • The percentage of the balance still owing on the mortgage
  • The percentage of the amount already repaid
  • The number of months’ interest

A more flexible buy to let mortgage

Buy to Let Mortgages can be costly if you need to unexpectedly end them early, perhaps if you need to sell the property or you see a great investment elsewhere. A buy to let mortgage with no early repayment charges (redemption penalties) gives buyers an extra layer of reassurance should they not be 100% certain the property will be a long term investment. Being able to sell the property at any time without penalty could put the buyer at a great advantage financially. As this type of mortgage tips the balance in favour of the investor, not the lender. Whether you are looking for your first time buy to let mortgage, or you are a property portfolio owner, using a specialist buy to let mortgage broker highly experienced in the BTL sector we will be able to quickly and precisely find you the best value mortgage to match your requirements.

Other benefits with BTL mortgages without early repayment charges

Along with the potential saving of up to 4 percent of the loan value, as with a typical buy to let mortgage, there is the added selling value of a tenanted BTL property. Should the owner be able to sell the property with a tenant in place, potential investors are likely to be encouraged by the prospect of taking on a property which has an established tenant – which saves the cost and hassle of finding a new tenant and vetting them, but it also means that they immediately receive a return on their investment.

As a product, buy to let mortgages with no redemption fee is relatively new on the market, so it is essential that you seek professional advice before taking out this kind of mortgage. Here at Ascot Mortgages we believe in giving you impartial advice, whatever your situation. If you are a buy to let investor we can use our knowledge and excellent reputation in the market to find you a bespoke mortgage offer, for the best price and quickly. We would encourage you to call and speak to one of our trained, friendly advisors who can discuss your requirements with you. Our guide, on buy to let mortgages with no early repayment charges (redemption penalties), is a good place to start.

Apply for a Mortgage

Get things moving, apply for a remortgage.

Call Now - 01925 711 558

Free unbiased mortgage advice is just a phone call away.

FAQ

Yes, if you’re looking to move out of your current home and rent it out while purchasing a new residence, you can switch from your existing residential mortgage to a let to buy mortgage. It’s essential to discuss this with your current lender or consult a mortgage advisor to understand the process and any associated fees.

Most standard residential properties are eligible for let to buy mortgages. However, some lenders may have restrictions on certain property types, such as high-rise flats, non-standard construction properties, or properties with shared ownership. Always check with your chosen lender or a mortgage advisor to ensure your property is eligible.

Yes, the location of the property you wish to “let” and the property you wish to “buy” can be in different cities or regions. The main consideration is the rental demand and property values in the respective areas, which will influence the lender’s decision.

Your credit history is a crucial factor that lenders consider when assessing your eligibility for any mortgage, including let to buy. A good credit score can increase your chances of approval and potentially offer better interest rates. If you have past credit issues, it may limit your mortgage options or result in higher interest rates. However, there are specialist lenders who might consider applicants with less-than-perfect credit, so it’s worth discussing your situation with a mortgage advisor.

Meet Our Team

Video

Contact Us

*Privacy Notice - Any information provided will be treated with confidentiality and will only be accessible within Ascot Mortgages