Mortgage approvals up by 33% at mutuals
2011-11-01 12:11:10.0
Let to buy mortgages
Let to buy mortgages are used if you want to move but can’t sell your home.
You rent out your existing home, and take out a let to buy mortgage on it, which you use to pay towards a new home.
This sort of mortgage is useful if you have to move for work reasons, for example, but can’t sell - or if you want to hold on to your original home for investment purposes.
How do they work?
The let to buy lender calculates how much it is willing to lend you without taking your existing home loan into consideration - as long as the rent paid by your tenants covers the monthly repayments.
The lender on your existing mortgage has to be satisfied this is enough, otherwise it won’t let your mortgage be ignored when your new lender makes calculations for your Let to Buy loan.
Be aware that you must ask your existing lender for permission; lenders may say no if they think you are financially over-stretching yourself.
Find out more
To find out more about your let to buy mortgage options, you can get free advice from a specialist mortgage advisor.
| Lender | Initial Rate | Duration | Standard Rate | Overall Cost For Comparison | Max Loan To Value | Fee | |
|---|---|---|---|---|---|---|---|
|
1.99% | To Jan 2014 | 3.94% | 3.7% APR | 60% | £999 | |
|
2.25% | To Nov 2013 | 3.5% | 3.4% APR | 60% | £1,945 | |
|
2.45% | 2 years | 5.69% | 5.4% APR | 75% | £999 | |
|
2.49% | 2 years | 4.99% | 5% APR | 85% | £995 | |
|
2.49% | 2 Years | 5.19% | 4.9% APR | 75% | £495 | |
|
2.49% | 2 years | 4.99% | 4.7% APR | 70% | £499 | |
|
2.59% | 2 years | 5.64% | 5.1% APR | 75% | £990 | |
|
2.59% | To Dec 2013 | 4.59% | 4.5% APR | 65% | £999 | |
|
2.65% | 3 years | 5.49% | 4.8% APR | 75% | Nil | |
|
3.29% | 2 years | 5.59% | 5.2% APR | 80% | £999 | |
|
3.35% | term | 4.99% | 3.5% APR | 75% | £99 | |
Mortgage Rates by Lender
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