Let to Buy from a Lenders Perspective. Following on from my last post about Let to Buy and how it can be a powerful strategy in certain circumstances I thought I would make a post explaining what would typically be required from a lending standpoint so that if you come to utilize this strategy you know what to expect.

Lenders would typically want you to have an onwards purchase address of the property you would be moving into.

Your new BTL Lender will want to see that you are moving out of your current home and into a new one. They will usually insist on a simultaneous completion to confirm you will definitely be moving out and not living in your new BTL. (P.S Don’t do that its Mortgage Fraud)

They may ask for a copy of your new residential lender’s mortgage offer as evidence, they may also ask for you to use the same solicitor for your new purchase as well as your remortgage, so make sure you have at hand a good solicitor who can do this.

Your new Lender will also want to make sure that the rental stress test on the new BTL meets their requirements. This can vary from lender to lender but since this is a Let to Buy transaction in your own name it will typically be based on your tax status 125% for basic rate and 145% for a Higher rate.

If you are looking for assistance on a Let to Buy from a Lenders Perspective or have any questions please get in touch!