As time passes we might find that we need more space, we feel the need to expand in order to provide what’s best for our loved ones.
When being part of a growing family there is much need for space and one way to do that is to purchase a larger house or propriety but most of us can’t afford buying a new house when it’s almost impossible to sell the old one in this economy.
Investors have noticed this and saw in it an opportunity. There is a large number of potential applicants in need of finances for purchasing new homes. In order to support the rental market’s continuous evolution at the same level a large array of loan packages has been developed.
The let to buy mortgage is the ideal solution because it offers financial support for buying the new propriety while at the same time the applicant can keep his or her home. By becoming a landlord and offering the previous home for rent you can purchase the new one, start a new business and make a bit of profit on the side.
While increasing your credibility for future large loans you are also keeping your old home which you might want to use in the future.
In order to apply for a let to buy mortgage you have to prove ownership of the propriety, you must have a valid bank account in the United Kingdom, you must have proof of your residency in the United Kingdom for at least three years prior to that date and you must explain your financial status in order to clarify your eligibility.
The interest rates depend on the type of loan you choose. There are stable or fixed monthly rates that usually have a larger interest rate because they simplify future planning and offer stability; and there are trackers or variable monthly rates that have a lower interest rate but they might pose risks, this being one of the reasons the creditors need to know your correct financial status.
It’s important to choose the let to buy mortgage that will help you grow financially so ask as many questions as you need and seek more information before applying for this type of loan. There are specialized brokers that you can contact online; it’s enough to simply reach out and you will find the guidance you need to start your new business.
Author: Jennifer is a financial blogger. She loves writing about insurance and landlord mortgage and her experience in this field makes a difference.