If you are thinking of buying a new property while still keeping your old one then you should consider a let to buy mortgage, the let to buy mortgage shouldn't be confused with the buy to let mortgage although they do sound very similar. The let to buy mortgage is so new that you could have trouble finding it yourself and some lenders may even think you mean buy to let and this is why going with a let to buy mortgage specialist is your best choice.

The let to buy mortgage will allow you to buy a new home while keeping your existing one and renting it out, just as with any mortgage the let to buy depends on certain factors such as how much money you think you will get from renting out your current home in comparison to how much your new mortgage is going to cost.

The majority of lenders who specialise in the let to buy mortgage won't take your existing mortgage into account when making the calculations for your new mortgage and instead base it solely on normal income multiples. What this actually means is that you will have two mortgages and only be paying out the normal rates of interest on the two, whereas a normal buy to let mortgage will have slightly higher rates of interest tagged onto them. The amount of deposit that you need is also lower than with the normal buy to let at around only 5% rather than 15% as with the majority of buy to let mortgages.

As the let to buy mortgage is so new it is essential that you take the advice of a specialist rather than go searching online for the best deal yourself and make use of the articles and information they give regarding the let to buy so that you know exactly what you are getting into.

Sean Horton is a Director of Enhanced Wealth, a whole of market mortgage broker in Kent and IFA specialising in the provision of let to buy, income protection, mortgage protection and property development loans.

Source: www.isnare.com