Get Your Dream House Now With Let To Buy Mortgage

If you always find yourself dreaming of your dream house, yet you are currently strapped on cash, then maybe a “let to buy mortgage” may be a good option for you. Although this may sound too complicated, it simply means you can loan money to be spent on building your dream house while renting your current house to other tenants. This is an alternative to the famous “buy to let” option, and mind you it is definitely much more convenient than the latter. In fact, it has become a widespread phenomenon in Europe these days, especially in London.

How does this work? You must first understand the dynamics of the relationship between the “let to buy lender”, the borrower or lessor and the tenant. The lender has an existing contract with the borrower, almost exactly the same as in a typical loan. The former, before lending his money, ensures that the borrower has enough collateral to pay his loan. The collateral is in the form of rent paid out by the tenant to the borrower who rents his current house to the aforementioned. The amount of loan will depend on the monthly rent that the borrower receives from his tenant. The good thing about this is that even if your house had been previously mortgaged to some other person, the lender can ignore this altogether, so long as the monthly rentals are sufficient to cover the monthly repayments for the loan incurred.

This option is particularly advisable for budding property investors because for one, it minimizes the risks of buying new properties because the investors get to keep their old one. For the more sentimental ones, this is also a good way of incorporating the old with the new.

As a word of advice, it is still best to consult with a professional broker if you’re looking into this as a profitable venture. The biggest danger you might face is that your new house might cost more than you’ve anticipated or worse, for a certain reason such as for example a fortuitous event, your new purchase might end up as a dead investment after all.

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