The clue is in the title for a let to buy mortgage. You let your existing property with a mortgage on it and use the mortgage to release capital to buy another main residence.
Many people are lucky enough to get on the property ladder and buy their own home.
Career wise, many people then move on to new employment or up the career ladder but need to move town, city or even overseas.
Many would like to keep their original home and rent it out to then buy another property to live in at their new base having perhaps rented in the new location for a period.
Initially, when you move out of your original property you can arrange a ‘consent to let’ from your existing residential mortgage lender. Consent to let usually only lasts for a year to two and then your residential mortgage lender will expect you to move to a ‘buy to let’ or ‘let to buy’ mortgage. This gives mortgage lenders greater rights and protection as well as your tenants.
Let to Buy Mortgages
Tax issues to be aware of when buying a second home: