Let to Buy Mortgage in Sheffield

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What is a let to buy mortgage?

When you have a let to buy purchase and mortgage, this is where you take a home you were previously living in and choose to instead rent it out, as a means of buying a new home for yourself.

 

For you to be able to do this, you will have to take out a remortgage, switching you from a residential mortgage, which you will be on currently, onto a new let to buy mortgage.

 

Additionally to this point, you will also be taking out a new mortgage on your new home purchase, that you plan to move into.

 

Both mortgages will happen at the same time, as you will need to have the funds released from your remortgage on your new let to buy, in order for you to put down a deposit on your new home.

 

This doesn’t mean that they are linked mortgages, you do not have to use the same mortgage lender, it just so happens that your new home mortgage will rely on the let to buy mortgage being completed first.

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

As can likely be deduced by the similar sounding names of the two, a let to buy mortgage is another type of buy to let mortgage available to homeowners.

 

A buy to let in Sheffield will typically include taking out a mortgage on a property, with the sole purpose of letting (renting) out that property, so that you have a means to generate additional income.

 

The difference between that and a let to buy mortgage in Sheffield, is that it most commonly found when dealing with “accidental” landlords. This is usually a situation where perhaps you had no initial plans to become a landlord, though this later changed.

 

Instead of going through all the stresses involved in selling a home and buying a new buy to let property, quite often homeowners will just rent out that home instead, using the income generated from that monthly income, in order to pay off their new residential mortgage on their new home.

Stamp Duty Charges

You should always be wary when it comes to the costs of applying for a mortgage, and this is still something that applies when you are looking to take out a let to buy mortgage in Sheffield. Stamp Duty will not apply to everyone, though it is always important that you look at it before your process is underway.

 

As a reputable and well-established mortgage broker in Sheffield, a member of our trusted mortgage advice team will let you know all of the costs that are involved in your let to buy mortgage process, including Stamp Duty, during the course of your free initial mortgage appointment with a mortgage advisor in Sheffield.

How to get a let to buy mortgage in Sheffield?

Before you are able to get a let to buy mortgage in Sheffield, you will have to make sure that you match up with the appropriate mortgage lending criteria. Your dedicated mortgage advisor in Sheffield will take a look at your case during the course of your free mortgage appointment, to ensure it is the right path for you.

 

The qualifying criteria for a let to buy mortgage in Sheffield includes, meeting the requirements for affordability on your new home, having at least 10% deposit saved for the purchase of your new home, as well as the typical requirement of 25% deposit to put down on your let to buy property (this can be equity released when you do your remortgage).

 

You must also make sure that your projected rental income will be able to cover 125% of the payments you have for your new mortgage as a landlord. A good credit score is definitely recommended, though you may be able to obtain a let to buy mortgage if you have bad credit.

Can I get a let to buy mortgage in Sheffield with bad credit?

Because of how this mortgage works and it’s ties the to residential and buy to let aspect of owning a property, you will often find that there is much stricter mortgage lending criteria for a let to buy mortgage in Sheffield.

 

Whilst having a low credit score, a CCJ, a default or possibly even history of late payments, just to name a few of them, can have a serious impact on your ability to take out a mortgage, there are a plethora of specialist mortgage lenders we have on panel, who could possibly help.

Speak with an Expert Mortgage Broker in Sheffield

As open & honest providers of mortgage advice in Sheffield, we have had the pleasure of helping many different customers over the years to remortgage their home and change their residential mortgage to a let to buy mortgage in Sheffield.

 

Our team of expert mortgage advisors in Sheffield are able to take a look through 1000s of let to buy mortgage deals, so that they can find you the best one for your personal and financial situation.

 

Book yourself in for a free mortgage appointment with a fast & friendly mortgage broker in Sheffield today and we will see how we can help.

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Let to Buy Mortgage Advice in Sheffield

A let to buy mortgage in Sheffield, as we have mentioned above, will most often occur when the owner of a residential property will instead look at their options for remortgaging their home and turning it into a form of buy to let mortgage, as well as purchasing a new home on a residential mortgage, that they can live in.

 

Rather than going through the process of selling your current home and potentially leaving yourself stressed with property chains before you move in, a let to buy mortgage in Sheffield can actually help to reduce much of a homeowners stresses and pressure, whilst also serving to generate new income for you in the process.

 

There are both pros and cons to this, and it’s important to be aware of them all. As providers of expert mortgage advice in Sheffield, we have a great knowledge of situations like these, and have compiled a list of the pros and cons to a let to buy mortgage in Sheffield,  below.

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

Primarily, if we take a look at the positive sides of a let to buy in Sheffield, it can be a whole lot easier than going through the stressful process of selling your current home and finding somewhere else for you to live. Furthermore, it is a means of earning additional income that in theory, should pay for itself (the mortgage).

 

The potential downsides to this, is that whilst it reduces home selling stresses, you will be suddenly responsible for two properties instead of just the one, which in itself can be quite stressful for property owners. One of your properties will also have a family living in there, which you will have a level of responsibility for.

 

As discussed though, this will provide you with additional income, which can be a positive. You will need to remember that these types of mortgage, however, may also have a higher interest rate than a residential mortgage would have. There are also less choice when it comes to mortgage lenders with these deals, though thankfully we still have plenty on our panel.

 

That being said, even though they could be higher than residential mortgage rates, a let to buy mortgage in Sheffield may come with a lot more competitive interest rates and fees than a buy to let mortgage in Sheffield would, which could definitely be beneficial to you.

 

A key element to remember as well, is if the value of both your properties goes up, you could potentially grow your gains and find yourself with a substantial profit, should you look to sell a property later down the line. On the other hand, if the value for each property goes down, you could be at a financial loss.

So, is a let to buy mortgage in Sheffield right for me?

There is a lot to consider when you take out a let to buy mortgage in Sheffield, but it will all depend on how you weigh up the impact of each factor to you personally. It may be worthwhile and yet it might still not be the best option for you.

Alternatives to a Let to Buy Mortgage in Sheffield

If a let to buy mortgage in Sheffield isn’t your most suitable choice, there are other steps you could take, such as possibly moving into a temporary or rented property, in preparation for eventually taking out a standard buy to let in Sheffield.

 

The problem with this, is this type of practice can often be expensive, difficult to get out of, and you also may not match up with the criteria for a mortgage lenders buy to let mortgage in Sheffield.

 

Another possible route to take is something that is called a consent to let, wherein a mortgage lender will allow a homeowner a granted length of time of which you are able to rent out your property, allowing you the opportunity to move into your home ahead of time.

 

This can initially seem much easier, though it will entirely depend on the mortgage lender you are working with. Additionally, obtaining a mortgage if you have a consent to let in place can pose a little more of a challenge.

 

Last of all, you may find that an alternative could simply be to sell your home, move into rented housing and then remain there until you decide to buy a home again. This can be a complex cycle to get out of, though because there won’t be as much of a property chain risk, you could be in a better spot for a mortgage down the line.

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

Our incredible team of dedicated mortgage advisors in Sheffield have an immense and in-depth knowledge of helping a great deal of homeowners in taking the next step in their mortgage journey, as they begin life anew as a landlord, with a let to buy mortgage in Sheffield.

 

As a team of mortgage advisors in Sheffield with a strong reputation, we work hard each and every day of the week, from early until late at night. This allows us to offer our customers appointments at convenient times, subject to appointment availability.

 

Every customer who contacts us will experience the benefits from a free mortgage appointment, taking place over the phone or with a Microsoft Teams video call.

 

You may feel like your situation is complicated, but by using our 20+ years of mortgage world experience, we are able to break through the barriers of many mortgage circumstances. It is quite likely that we will have worked with a similar situation in the past.

 

We know that the process of obtaining a mortgage can be complicated, so we’ll do our best to answer any questions you may have for our team. We work for the customer, aiming to reduce your stress and help you reach mortgage success.

 

Our fast & friendly team of mortgage advisors in Sheffield are able to search through 1000s of mortgage deals for you. As a new landlord with a let to buy mortgage in Sheffield, you want to know you are on the best mortgage deal. We aim to give you a positive mortgage experience!

 

Book yourself in for a free mortgage appointment using our online contact form and speak with a mortgage advisor in Sheffield today.

Reviews Stars4.95 Rating176 Reviews

Common mortgage
questions

Your free mortgage consultation with a Mortgage Advisor in Sheffield will last approximately an hour. Once they have evaluated your situation, they will recommend a mortgage for you with no obligation for you to proceed. Based on the deal, you can decide whether or not you want to continue the process with us or not.

As a trusted Mortgage Broker in Sheffield, we carry out a fact find to verify your needs before recommending you with a mortgage deal. After a Mortgage Advisor in Sheffield has evaluated your situation, they will perform a credit check on you, this is required for an agreement in principle. Then after you have provided all of the relevant documentation and a valuation of the property has been carried out, a formal mortgage offer can be issued.

We always advise that you obtain an agreement in principle before you start viewing properties in Sheffield, to avoid disappointment. If you want to get yourselves a head start, you should get one prior to making an offer.

Typically, an agreement in principle lasts for between 30 and 90 days, however, this can change depending on your lender in Sheffield. If your agreement in principle expires, you can renew it quite easily.

Yes, you can get a second mortgage. Whether this is for debt consolidation or home improvements, this is possible. It is also possible to take out a second mortgage on a second property but only if it is own use, the use of a family member, a holiday home or a Buy to Let.

To buy a property in Sheffield, you will need to meet a minimum deposit. Typically, with high street lenders, this is usually 5%. This percentage can be higher if you have previous credit problems.

It will be harder but yes you can. You will have to show that you can afford a mortgage by putting down a higher deposit, perhaps 10% or 15% of the purchase price.

Yes, however, you must submit at least one years’ accounts. Most lenders use your salary + dividend to calculate the maximum mortgage, whereas other lenders in Sheffield could base it of your net profit.

If you are an employee, you will need to provide three payslips to prove your income. If you are Self Employed in Sheffield, you will have to prove for the latest 2 years’ accounts. Along with this, you must produce proof of ID, address and 3 months’ bank statements.

Our free mortgage consultation in Sheffield will take about an hour. Once your consultation is completed, we can arrange an agreement in principle for you within 24 hours. A formal offer takes up to three weeks on average.

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 great 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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