Let to Buy Mortgage in Hull

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What is a let to buy mortgage?

A let to buy purchase and mortgage is where you rent out a home you are living in, in order to buy a new home for yourself.

 

In order to achieve this, you will be remortgaging from a residential mortgage, which you will currently have, in order to switch onto a let to buy mortgage.

 

In addition to this, you will be taking out a new mortgage on the home that you are moving to.

 

Both mortgages will occur consecutively, as you need the released funds from your remortgage on the first property, in order to put down a deposit on the new property.

 

This doesn’t mean using the same mortgage lender, you just have a mortgage that relies on another being completed.

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

As you may be able to guess from the similar sounding names, a let to buy mortgage is in fact a type of buy to let mortgage.

 

A buy to let in Hull entails taking out a mortgage on a property, purely for the purpose of letting (renting) out a property, in order to generate additional income.

 

The difference with a let to buy mortgage in Hull, is that it will usually come about with “accidental” landlords. This is where perhaps you don’t initially plan to become a landlord, later changing your mind.

 

Instead of the stress of selling your home and buying a new buy to let, often homeowners will opt to rent out that home, using the income generated to pay off their new residential mortgage.

Stamp Duty Charges

You should always be wary with costs when applying for a mortgage, and this is no different for a let to buy mortgage in Hull. Stamp Duty doesn’t apply to everyone, so it is always important to look at this ahead of time.

 

As a trusted mortgage broker in Hull, one of our dedicated mortgage advisors will inform you of all the costs involved in your process, including Stamp Duty, during your free initial mortgage appointment.

How to get a let to buy mortgage in Hull?

In order to obtain a let to buy mortgage in Hull, you will have to meet the appropriate criteria. Your mortgage advisor in Hull will take a look at your case during your free mortgage appointment, in order to make sure that this is right for you.

 

The qualifying criteria for this type of mortgage includes, meeting affordability requirements for your new home, having at least a 10% for your new home, as well as a 25% deposit to put down on your buy to let (this can be equity released during your remortgage).

 

You will also need to make sure that your rental income can cover 125% of the payments you have for your new buy to let mortgage. A good credit score is advisable, though it may be possible to obtain a let to buy mortgage with bad credit.

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

Due to the nature of this type of mortgage being linked to a residential and buy to let aspect of owning a property, you can often be met with stricter criteria for a let to buy mortgage in Hull.

 

Whilst having something like a low credit score, CCJ, default and a history of late payments, to name but a few, can have an impact on your ability to take out a mortgage, there are specialist mortgage lenders that we have on panel, who may be able to help.

Speak with an Expert Mortgage Broker in Hull

As providers of open & honest mortgage advice in Hull, we have helped many customers over the years in remortgaging to switch their residential mortgage onto a let to buy mortgage in Hull.

 

Our team of mortgage advisors in Hull are able to search 1000s of let to buy mortgage deals, in order to find the best one for your personal and financial circumstances.

 

Book your free mortgage appointment online with a trusted mortgage broker in Hull today and we will see how we are able to help you.

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Let to Buy Mortgage Advice in Hull

A let to buy mortgage in Hull, as discussed above, generally occurs when the owner of a residential property wishes to remortgage their home, switching it into a buy to let mortgage, as well as buying a new home for them to live in.

 

Rather than looking to sell your home and having to potentially deal with a property chain prior to moving into your new home, a let to buy mortgage in Hull can reduce a lot of the stresses and pressure from your process, and allows you to generate some income in the process.

 

Whilst there are upsides, there are also downsides, and it’s important to be wary of each. As providers of expert mortgage advice in Hull, we have a great knowledge on instances like these, and have collated a list of the pros and cons to a let to buy mortgage in Hull, below.

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

So first off, let’s take a look at the positives. As said, rather than go through all the trials and tribulations included in attempting to sell your current home and then find somewhere else to live, it can create a less stressful environment for you.

 

On top of that, it is another vehicle for you to earn enough income to pay for its own mortgage, plus additional profit for yourself to enjoy.

 

The downsides to this, is that being responsible for two properties, especially when one of those includes anywhere from one person to a whole family that you will become responsible for (to some degree), in itself can be a stressful endeavour. It’s not for everyone.

 

Whilst you will have that extra income, a let to buy mortgage in Hull may have higher interest rates than you would have for a residential mortgage in Hull and there are fewer mortgage lenders who offer let to buy mortgage deals (though there are plenty who may still be able to help).

 

That being said, whilst they will be higher than residential mortgage rates, a let to buy mortgage in Hull may have much more competitive interest rates and fees than a buy to let mortgage in Hull would, which could work in your favour.

 

You’ll also have to think about property value. If the value of both your properties goes up, you could increase your gains and potentially be in for some good profit if you look to sell in the future. Conversely, if the value drops of each, this could leave you with losses.

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

There are plenty of ups and downs to taking out a let to buy mortgage in Hull, but it all depends on how you personally weigh those up. It may be worthwhile and yet you may also be thinking of different options instead.

 

What are those options though, what else can you do?

Alternatives to a Let to Buy Mortgage in Hull

There are other options available to you if a let to buy mortgage in Hull isn’t quite for you. For example, you may benefit from moving into temporary or rental accommodation, in order to take out a regular buy to let mortgage in Hull.

 

This can be quite costly, however, and you may not meet the lenders buy to let mortgage criteria.

 

You may also be able to partake in consent to let, wherein a mortgage lender will grant you a length of time in which you can rent out your residential property, whilst you move into your new home first.

 

Although this sounds like it may be easier, this will depend on your mortgage lender and obtaining a mortgage on a new home may be more difficult whilst having a consent to let in place.

 

Finally, an alternative may simply be selling your current home and moving into rental accommodation for a while, until you are ready to purchase again.

 

It can be hard to break out of the rental cycle, though it may put you in a better position for your next mortgage, due to the fact you’ll have no property chain of your own to worry about.

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

Our trusted team of experienced and dedicated mortgage advisors in Hull have a great knowledge of helping many homeowners to take the next step in their mortgage journey, as they take on becoming a landlord with a let to buy mortgage in Hull.

 

As a team of open & honest mortgage advisors in Hull, we work every day of the week, from early on until late at night. This means we are able to offer appointments at times that are most convenient to you, subject to availability.

 

All of our customers will get to benefit from a free mortgage appointment that will take place either via the telephone or via Microsoft Teams on a video call.

 

You may think that you have a particularly complex situation, but utilising our over 20 years of mortgage advising experience, we are able to take on a vast range of mortgage circumstances. It is highly likely that we will have come across something like your situation before.

 

We know that getting a mortgage can be quite tricky from time to time, so we’ll make sure we are always on hand to answer any question you may have. We work for you and do everything we can to reduce your stress levels and allow you to enjoy the journey.

 

Our mortgage advice team can search through 1000s of mortgage deals for you. As a soon to be landlord taking on a let to buy mortgage in Hull, you want to know you’re on the best deal for what you’re looking to do. It goes beyond just the mortgage, we aim to give you a positive customer experience.

 

Book your free mortgage appointment online today and speak with one of or fantastic mortgage advisors in Hull.

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Common mortgage
questions

Our free initial mortgage consultation will last roughly one hour. Lucky for you, as an experienced Mortgage Broker in Hull, we can turn around an Agreement in Principle within 24 hours. All we need is a quick phone call to gather the necessary information. A formal mortgage offer takes about three to four weeks on average.

If you’re an employee, you will usually have to supply three payslips and the latest P60 to prove your income. If you are Self Employed in Leeds, it is typically the latest two years’ tax calculations and correspondings overviews. You will also need to provide proof of ID (Driving license or Passport). Proof of Address (Utility bills, tax bills or credit card statements) and three months’ bank statement. You are proving the deposit built up with an explanation for any significant credits.

The good news is it may be possible to get a mortgage if you are self-employed in Hull. To qualify, you need to submit at least one years’ accounts. Doing so will help to increase the likelihood of obtaining a mortgage. Most lenders take a look at your salary plus dividend to calculate the maximum mortgage amount. Others may go off your net profit. It all depends on the lender.

The good news is that you may find it a bit more challenging to obtain a mortgage despite having previous credit issues on your record. But it doesn’t mean it’s impossible, and you may still be able to get one! It just means that some Lenders may ask for a slightly higher deposit of around 10-15%.

Most high street mortgage lenders will usually ask for a minimum of a 5% deposit. This percentage may be higher depending on your previous circumstances, e.g. if you’ve had any past credit issues.

The good news is it is possible to have two mortgages in Hull running simultaneously, as long as you can afford to repay the monthly instalments on each of them. If you’re looking to accomplish something like debt consolidation or home improvements, you may be able to place a second mortgage on your home.

An Agreement in Principle typically lasts for 30-90 days. However, this timeframe is up to the Lender. If your Agreement in Principle expires, worry not; you can renew it by getting back in touch with your Mortgage Advisor in Hull.

As a Mortgage Broker in Hull, we recommend that you obtain an Agreement in Principle (AIP) as soon as you can, preferably before you start viewing properties. Having an Agreement in Principle in place when you are viewing houses could potentially allow you to negotiate prices.

Our mortgage process consists of multiple different steps. The first step is to get in touch, and one of our trusted mortgage advisors in Hull will carry out a Fact Find to get a bigger picture of your mortgage situation.

Secondly, you’ll undergo your free mortgage consultation, and your assigned dedicated Mortgage Advisor in Hull will begin searching for mortgage deals that match your circumstances. If they find you an offer that you are happy to proceed with, we can get the ball rolling with your mortgage application.

Next, they will perform a credit check on you to obtain an agreement in principle. Some evidential documents will be required from you to help back up your mortgage application.

Lastly, they will submit your mortgage application and wait for a formal mortgage offer to be issued.

Your free initial mortgage consultation with your dedicated Mortgage Advisor in Hull will last around an hour. During this consultation, we will get to learn a bit more about your mortgage needs and what you are looking for. Once we know more about your personal and financial situation, we will start looking for mortgage deals that will match you perfectly.

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.

Handy quick links

Hullmoneyman.com & Hullmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

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

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

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Hullmoneyman, 410 Wincolmlee, Hull, HU2 0QL.

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