Let to buy mortgages will enable you to rent out your current property while at the same time buying a new house. These mortgages can be rather complicated and there are several things you lender will want to know before proceeding with a loan and also several responsibilities that you need to be aware of on top of the usual mortgage processes.
First of all, if you are considering going with a different lender, you need to let your current mortgage lender know that you intend to let to buy a new property. If your home is a leasehold property, you need to contact the freeholder to make sure they have no restrictions or reservations about the property being let. You also need to contact the insurance company with which you hold your buildings and insurance policy to inform them that you will be letting your property as this will affect your cover.
Your lender will also want to know that the rental income that your home is likely to produce will cover the mortgage on the property. In other words you will need to have your property valued for rental purposes, probably by more than one estate agent. The lender may also organise their own rental valuation. You will also be subject to the same application process on your new property as any other type of mortgage and so your lender will evaluate your earnings and outgoings to determine what they will be able to lend on your new property. As with other standard mortgages, the loan amount and interest rate you are offered will vary depending on the lender and also on the size of the deposit you are able to give.
