Let to Buy Mortgage

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Why Choose Us

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5-star reviews on Google
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years we have been as independent mortgage and protection brokers
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customer satisfaction for finding the best deals on the UK market
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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 142 reviews from review us onAreti D. ★★★★★ Absolutely thrilled with the exceptional service provided by Ascot Mortgages Ltd and especially by Natalia Barry! Even though our home purchase hasn't been completed yet, we couldn't wait to share our positive experience. From the moment we reached out, their professionalism and expertise shone through, making the daunting process of securing a mortgage a breeze.Not only did Natalia navigate the intricacies of the mortgage market with finesse, but they went above and beyond by suggesting other high-quality services, including solicitors and insurance providers. This comprehensive approach is making the entire home-buying journey seamless and stress-free.Natalia took the time to understand our unique needs and financial situation, ensuring that the options presented were tailored perfectly.Communication is prompt and clear throughout, leaving us feeling informed and confident at every stage. Natalia had our best interests at heart, going the extra mile to secure a fantastic mortgage deal.We cannot recommend Ascot Mortgages and Natalia highly enough. If you're in need of mortgage assistance, look no further. With their expertise and dedication to client satisfaction, you're in the best hands possible. A huge thank you to Natalia for making our home-buying experience a dream come true!Ashley Cox 1. ★★★★★ Would 100% recommend. Myself and my partner are currently going through the mortgage process as first time buyers. Natalia Barry has dealt with our application from day one. She has always been on hand to help, informative throughout and reliable when we have had questions. She has given us several options and broken them down into simple terms to help us. Natalia has truly been exceptional who deserves every bit of credit. We certainly got lucky having her as our first mortgage consultant.Dominik S. ★★★★★ Alison and the Ascot Team are excellent. I have used them for 5 years now and they deliver the most competitive mortgage deals fast. Just what I need. Thank you!Eric T. ★★★★★ We have dealt with Ascot Mortgages twice. Once for a mortgage about eleven years ago and recently for life insurance.In both cases we were treated with the utmost respect and professionalism.In the case of the life insurance application, we considered ourselves to be problem customers because of our age and numerous health issues.Richard Johnson, who managed this application couldn't have been more helpful.He worked in our best interest and was dedicated to providing an excellent service.We were kept up to date through all of the stages of the application and when our doctors were very slow in producing medical reports for the insurance company he persisted where others might have given up.The service we had from Richard was pleasant and professional throughout some difficult stages.My wife and I have no hesitation in recommending Ascot Mortgages.Zack R. ★★★★★ Having dealt with Ascot Mortgages and Alison for many years now I can say that you wont find a more professional, knowledgeable and efficient company to help with your mortgage. Alison is patient and makes the whole process seem easy. She has the answer to any question you have and seems to genuinely care. I can not recommend enough. I am sure I will be using Ascot Mortgages for years to come.Umair Z. ★★★★★ It has been a fantastic experience to work with both Phil and Jardelle at Ascot Mortgages to secure a mortgage product for my first home. Phil made the mortgage process smooth and easy. They are professionals and know what they are doing. Very pleased with the service and communication. would highly recommend them.Hello at NLP West M. ★★★★★ I needed a buy to let re-mortgage. Ascot were efficient from start to finish. I can recommend them completely especially because they can search the whole spectrum of mortgage lenders and meet the clients needs. never waiting for staff to get back and always kept me in the loop.Onohomen O. ★★★★★ ZHOU J. ★★★★★ It has been a brilliant experience to work with both Phil and Jardelle at Ascot Mortgages to secure a great mortgage product for our next home. Given how challenging the current market is, they have done a fantastic job to meet our needs with their expertise, professionalism and effectiveness. We would highly recommend their services to whom seeks help with their property purchase.Nicholas S. ★★★★★ Fantastic service. Ellie and Jardelle were always quick to reply to any queries and very helpful throughout the process. Highly recommend!Stacey S. ★★★★★ Jason was brilliant to work with! Always on top of the transaction! Would highly recommend 👍Scott ★★★★★ Although I've not bought anything yet, they (Jason in particular) have been super helpful in my search for the right mortgage deal, whilst also giving an honest opinion during these difficult times. Would highly recommend.Sandra I. ★★★★★ Fantastic from start to finish! Natalia and Jason found me the best rate for my remortgage and they were extremely efficient! Best service I’ve ever received from a brokerage company. Thanks so much.Virmantas N. ★★★★★ Amazing service and great communication. Ellie Morgan had quickly completed all requests and over delivered all expectations.Highly recommended for those who want to get the stuff done without any delays!David W. ★★★★★ I have used ascot for 3 renewals since they done helped me with my purchase which was complicated and will continue to use them going forward. Very fair prices and very helpful and knowledgeable even with just general information.Adam B. ★★★★★ Natalia made life very easy for us when remortgaging. Third time using ascot always a breezeTaff G. ★★★★★ Ascot Mortgages have been brilliant. Easy to work with and incredibly helpful. I am always happy to recommend them. Natalia and Jason have made the whole process much easier than I was expecting. Excellent service.Daryl L. ★★★★★ We've had a fantastic experience with Natalia Barry and Jason Jones at Ascot Mortgages for our property purchases and refinancing. Their expertise, coupled with genuine care and understanding of our needs, made the process smooth and stress-free.They were consistently communicative, keeping us informed at every step. Their assistance in consolidating our protection cover was invaluable, simplifying what could have been a complex process.What set them apart was their personal touch – always polite and ready to pick up the phone for a chat. This level of personal engagement is rare and much appreciated.In short, Natalia and Jason are not just skilled professionals but also truly dedicated to their clients. We highly recommend their services to anyone in need of mortgage advice.Sarah A. ★★★★★ I have used this firm for several years and they have always been super helpful and supportive, attentive and resolved issues in really useful ways. Shout out to Alison, Ellie and Jardelle (and the team!)Georgia W. ★★★★★ We worked with Ellie to secure our mortgage and protection, and she was a dream! Being a first time buyer, I was quite clueless about the process, and in a time where mortgage rates have been quite high, she worked right til the end to make sure we were getting our mortgage at the best possible rate and was always available to answer all questions I had. Can't recommend enough 🙂Richard D. ★★★★★ Laura S. ★★★★★ As a first time buyer, trying to navigate through potential mortgages was a very daunting thought. Ascot Mortgages were recommended to me and I've been extremely happy with the service provided. They have guided me through every step and I finally have a mortgage. Very pleased and would recommend.Lucy 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!js_loader

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

18.04.2024

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:

18.04.2024

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.

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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.

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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.

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