Let to Buy Mortgage in Manchester

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What is a let to buy mortgage?

A let to buy purchase and mortgage is the process of renting out the current property that you own and live in, as a means to purchase your new home.

 

For this to be achieved, you will need to remortgage your home, switching it from a residential mortgage and changing it onto a new let to buy mortgage instead.

 

Furthermore on this point, you will also be taking on a brand new mortgage on another property, this one being the new home that you are moving to.

 

Both mortgages will run alongside each other, as you will need to release funds from one of them, in order to put down the deposit on the other one.  You won’t necessarily use the same mortgage lender for each, they’re just separate entities that rely on each other.

What is the difference between let to buy mortgage and buy to let mortgage?

As can probably be figured out by the similar sounding names, a let to buy mortgage is just another variation of the ever popular buy to let mortgage. The latter involves taking out a mortgage on a property, purely with the purpose of renting it out and generating income.

 

The difference when dealing with a let to buy mortgage in Manchester, is that they typically end up happening with “accidental” landlords. This is where you maybe don’t have plans initially to become a landlord, only to later decide that it is something you’d like to do.

 

Rather than going through all the stresses of selling a home and buying a new one, more often than not, homeowners will opt to rent out their home, using the income generated to pay off their brand new residential mortgage.

Stamp Duty Charges

You should make sure that you are aware of all the costs when applying for a mortgage, and this is very much the same for a let to buy mortgage in Manchester. Stamp Duty will not apply to everyone, so it is always important to check ahead of time.

 

As an open & honest mortgage broker in Manchester, one of our trusted and experienced mortgage advisors in Manchester will tell you every cost that will be involved in your mortgage process, such as Stamp Duty, during your free mortgage appointment.

How to get a let to buy mortgage in Manchester?

For a property owner to be able to get a let to buy mortgage in Manchester, order to obtain a let to buy mortgage in Manchester, you will need to match up with the appropriate criteria. Your mortgage advisor in Manchester will review your circumstances during your free mortgage appointment, in order to make sure a let to buy is right for you.

 

The qualifying criteria for a let to buy mortgage in Manchester includes, meeting the affordability requirements for your new home, making sure you have at least a 10% for your new home, as well as a 25% deposit to put down on your let to buy property (this can be done by releasing equity during your remortgage).

 

You must also make sure that your rental income is abe to cover 125% of the payments you have for your new let to buy mortgage in Manchester. A good credit score is definitely recommended, though it could also be possible to obtain a let to buy mortgage in Manchester with bad credit.

Speak with an Expert Mortgage Broker in Manchester

As expert mortgage advisors in Manchester, we have helped a wide variety of customers over the years in remortgaging their residential mortgage into a new let to buy mortgage in Manchester. We are able to search 1000s of let to buy mortgage deals, to find the best one for you.

 

Book a free mortgage appointment online with a fast & friendly mortgage broker in Manchester today and we will get the ball rolling on your let to buy mortgage in Manchester.

How does it work?Get a quote nowMeet your advisor

The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.

We search 1000s of mortgage deals across a large number of lenders, including:

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Let to Buy Mortgage Advice in Manchester

A let to buy mortgage in Manchester, as we have mentioned, typically happens when the homeowner of a residential property decides that they actually would like to become a landlord and remortgage their home, changing it from a residential mortgage onto a let to buy mortgage in Manchester. They also then look at buying a new home to live in.

 

Whilst there are both positives and negatives to a let to buy mortgage in Manchester, it’s important that you weigh up how important they are to you. As providers of mortgage advice in Manchester, we have a lot of expert knowledge on let to buy mortgages in Manchester and have put together a list of the pros and cons, below.

The Positives and Negatives of a Let to Buy Mortgage in Manchester

So first off, let’s take a look at the positive side of things. Instead of all the hassle you could go through in selling a property and then trying to buy a new one, taking out a let to buy mortgage instead could make your entire process much less stressful and also provide some additional income for you.

 

Then again, conversely to this, you are responsible for two properties and also your tenants (potentially a family looking to build a family home) and this in itself can prove to be quite a stressful endeavour in itself.

 

Furthermore, whilst you would have more income, let to buy mortgage rates are typically higher than residential mortgage rates and there are less mortgage lenders out there who offer this type of deal. That being said, those rates could be much more competitive and we also have plenty of mortgage lenders on our panel who can help with let to buy mortgages in Manchester.

 

You’ll also have to bear in mind the possible changes in property value. An increase in both properties values would obviously see you at an advantage if you ever wanted to sell up, though a drop in either or both could very much see you at a financial loss.

Alternatives to a Let to Buy Mortgage in Manchester

There may actually be much more suitable options out there for you instead of taking out a let to buy mortgage in Manchester. One of these could be to move into temporary or rental accommodation, whilst you take out a standard buy to let mortgage in Manchester or save up the funds to buy your next residential home.

 

The issue here is that this can be quite costly and in being in rental accomodation, you may also not match mortgage lender criteria for a buy to let mortgage in Manchester. Furthermore, it can be quite a costly and difficult cycle to move from rental property back to homeownership.

 

Another option could be consent to let. Here, a mortgage lender lets you rent out your residential home for a set length of time to earn some income, whilst you move into your new home.

 

This may sound easy, but entirely depends on mortgage lender. Additionally, getting a mortgage on a new home with consent to let in place on another one, may be a difficult process for some.

Why choose us to help you remortgage onto a let to buy mortgage in Manchester?  

Our trusted team of hard working and long serving mortgage advisors in Manchester have an immense knowledge of helping many homeowners move towards their property owning goals, helping many let to buy mortgage seeking future landlords to achieve what they are looking to do.

 

As a team of fast & friendly mortgage advisors in Manchester, we work 7 days a week, from early on until late at night, offering appointments that suit you, subject to availability.

 

Whilst your circumstance may seem complex, it’s entirely likely we have encountered something similar in our time in the industry. We will do what we can ato answer all of your mortgage questions and reduce your stresses.

 

We have the ability to search through 1000s of mortgage deals for you. We want to give you a positive customer experience and leave you with the best deal that you can get. Book your free mortgage appointment today and we will see how we can help.

Reviews Stars4.96 Rating379 Reviews

Common mortgage
questions

Your free initial mortgage consultation in Manchester will last roughly one hour. A dedicated advisor will then recommend a mortgage for you, with no obligation to accept and go forward and proceed with the mortgage in question, if you decide that it is not for you.

As trusted Mortgage Advice professionals in Manchester, we will carry out a Fact Find to establish your personal needs before we go ahead with recommending the most suitable mortgage for your situation. From there you will be credit checked, which is a requirement to obtain an Agreement in Principle. Once you have provided all the relevant documentation and a valuation of the property has been undertaken, you can be issued a formal mortgage offer.

We recommend you obtain an Agreement in Principle prior to property viewings in Manchester, in order to avoid potential disappointment. At the very latest we would suggest that you obtain one before you make any offers, to put you in a better bargaining position. As a dedicated Mortgage Broker in Manchester, we are typically able to obtain an agreement in principle within 24 hours.

Generally speaking, an Agreement in Principle will last for between 30 and 90 days, depending on the lender that is used. If your Agreement in Principle expires before you can make use of it, it can be easily refreshed by speaking to your advisor.

If you’re looking to achieve something like debt consolidation or home improvements, you may be able to place a second mortgage on your home. If you’re looking to use it for yourself, a family member, a holiday home or a Buy to Let, a second mortgage on that property may also be an option.

A high street lender will typically require you to put down at least 5% of the property purchase price for your deposit. If you have had credit problems in the past, this may be higher.

If you have struggled with credit problems in the past, you may still be eligible for a mortgage, though a lender may possibly require you to put down a higher deposit than expected. This can be something like 15% of the property purchase price.

Submitting at least one year’s accounts moves you along the process, allowing for you to potentially obtain a mortgage in Manchester. Most lenders will utilise your salary plus dividend to calculate the maximum mortgage amount you are eligible to borrow, whereas some other lenders will go off your net profit.

In order for an employee to prove their income, it’s usually 3 payslips and the last 2 years’ accounts if you are self-employed. You will also need to provide some proof of ID, address and the last 3 months’ bank statements.

The free initial mortgage consultation that we offer generally lasts up to around an hour. We are then able to turn around an agreement in principle within 24 hours of that appointment. A formal mortgage offer takes, on average, somewhere around three weeks.

We make it so easy!
Our 4 step process

Step 1

A telephone call where we can take some initial details and find out about your plan of action.

Step 2

Enjoy finding a property!

Step 3

Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.

Step 4

Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.

A telephone call where we can take some initial details and find out about your plan of action.

Enjoy finding a property!

Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.

Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.

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Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

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www.financial-ombudsman.org.uk

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