Remortgage to let provides an alternative to traditional buy to let deals.
A remortgage to let is also known as let to buy mortgage deal. These deals work by allowing you to borrow money to buy a new home while retaining your existing property, which can then be let out to tenants.
2012 is being billed as the year of the landlord. The rental market is experiencing a boom while other investments have been poor. With rental yields at record high levels, some home-owners who want to move are taking on remortgage to let deals as these allow them to the retain their original property as an investment.
Providing the rent covers the existing mortgage payment, a new mortgage lender will calculate the maximum loan they are prepared to lend, without taking the existing mortgage into consideration.
Research by the Halifax has revealed that the mortgage on three bedroom house costs on average £100 less than renting a similar property. In light of these figures it is therefore more than likely a tenant paying rent can cover the mortgage payment.
The benefits of a remortgage to let include the ability to retain your property if you need to relocate as the result of a job change. It provides a way of retaining your original property as an investment while benefiting from tenants who are paying the mortgage with their rent. It can also be of huge benefit to those who are having trouble selling their property but who are desperate to move on.
Deal Direct can help those looking for a let to buy deal. We are familiar with different remortgage providers lending criteria and are best placed to source a competitive deal.
