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Let to Buy mortgages in Derby allow homeowners to retain their current property and let it out while purchasing a new home to live in.
This option is ideal for those wanting to step into property letting without selling their current residence.
By converting your existing mortgage to a Let to Buy product, you free up equity that can go towards your next property purchase.
These mortgages can also suit those relocating for work or growing families needing more space but wanting to keep their current home as an investment.
With tailored mortgage advice in Derby, this process can be straightforward and beneficial for long-term financial goals.
To arrange a Let to Buy mortgage in Derby, you’ll need to meet certain requirements.
Typically, your existing property mortgage will be converted into a Let to Buy mortgage, allowing you to let out the property.
Simultaneously, a residential mortgage will be arranged for your new home. Lenders will assess rental income potential and your overall affordability before approval.
Our mortgage advisors in Derby will consider your circumstances to find a lender offering competitive terms.
This dual approach can streamline moving home while securing a rental income from your existing property, providing a stable investment opportunity.
The cost of Let to Buy mortgages in Derby depends on several factors, including the loan-to-value (LTV) ratio, interest rates, and additional fees.
You’ll need a deposit for the new property, typically starting at 10% to 15%, depending on the lender.
Additionally, your Let to Buy mortgage will incur costs such as interest rates on the remaining balance and landlord-specific insurance.
A mortgage broker in Derby like us can provide a clear picture of your costs, helping you compare deals that suit your financial plans.
Proper planning ensures you understand affordability and any long-term commitments involved.
Let to Buy mortgages in Derby allow you to let out your current property while purchasing a new home to live in.
This is a popular option for those looking to keep their existing home as an investment while relocating or upsizing.
Homeowners with sufficient equity and stable finances are typically eligible, making this an attractive solution for many in Derby.
While Let to Buy mortgages are designed for homeowners letting out their current property to fund the purchase of a new home, Buy to Let mortgages are intended for buying investment properties exclusively for rental purposes.
Let to Buy mortgages in Derby combine elements of both residential and rental property financing, tailored to your unique needs.
Lenders assess affordability by evaluating the projected rental income of your current property and your personal income for the new mortgage.
Typically, they require the rental income to cover 125%-145% of the Let to Buy mortgage payments.
Ensuring your finances meet these criteria is essential for approval.
Yes, if you plan to rent out your current home, you’ll need to switch your mortgage to a Let to Buy product.
Failing to inform your lender may breach the terms of your existing mortgage.
A mortgage broker in Derby like us can guide you through this transition smoothly.
Releasing equity from your current property is often a key step in the Let to Buy process.
The equity can be used as a deposit for your new home, making it easier to finance your purchase.
One of our mortgage advisors in Derby can help calculate how much equity you can access.
Yes, costs may include valuation fees, higher interest rates on the Let to Buy mortgage, landlord insurance, and any maintenance expenses.
Additionally, you’ll need a deposit for your new property, typically starting from 5% to 15% of its value.
During any periods when your Let to Buy property is unoccupied, you’ll still be responsible for covering mortgage payments.
To mitigate this risk, consider rental guarantee insurance to safeguard your income.
Yes, first-time landlords are eligible for Let to Buy mortgages, provided they meet lender requirements.
We can help find lenders experienced in working with new landlords and ensure you meet all criteria.
Rental income from your Let to Buy property plays a crucial role in lender assessments.
It must cover a percentage of the mortgage payments, often ranging between 125% and 145%. Ensuring competitive rental pricing is key to meeting lender expectations.
A mortgage broker in Derby simplifies the process by comparing lenders, navigating regulations, and finding competitive deals tailored to your needs.
Their expertise ensures you make informed decisions, avoiding pitfalls common in the Let to Buy process.
Our Customers Love Us
5.00 Rating29 Reviews
Anonymous
Really good service till the end, making sure everything was finalised smoothly. Will definitely use again when needed.
1 month ago
Anonymous
DIna was my mortgage broker and was so friendly and non-judgemental of my circs. I was wanting to buy an ex out the property and pay off some debt - she got me an offer within days. I had used free mortgage advice companies who hasn’t managed...
3 months ago
Liz
I dealt with Dinah who is the friendliest non-judgemental advisor I have ever dealt with . My case wasn’t that straight forward, but within days I had an offer. I have used well known free advice companies before, but didn’t get anywhere with...
3 months ago
Anonymous
They were quick to respond and maintained great communication throughout the process. Emails were answered promptly, making the entire experience smooth and stress-free. Highly recommended for anyone seeking a reliable and responsive mortgage broker!
3 months ago
Donna
Amazing service would highly recommend A+++
10 months ago
Anonymous
Quite helpful and fast in dealing with the proceedings of the mortgage application.
10 months ago
Arron
Good recommendation for 1st time buyers. Made whole process easy and straightforward.
1 year ago
Kudakwashe
Very good 👍
1 year ago
Sarah
I can’t believe the service we have had and we can’t recommend them enough, Matt and the team are amazing. We have had several mortgage offers through them but the houses we have bought have fallen through but nothing has been too much trouble...
1 year ago
Carol
Friendly efficient service, took their time to explain the procedure etc, I would definitely recommend them.
1 week ago
Joshua
Leo is always a pleasure to talk to. Very friendly and knowledgeable, and allows us to ask questions, no matter if we’ve asked before orbits really obvious
1 month ago
Adam
Thank you to Wayne and the team at UK Moneyman, Derby. We were first time buyers, both with adverse credit history and one with sporadic income from agency work. I was finding the whole process of applying for mortgages to be quite stressful and...
2 years ago
Arran
The team over at Derbymoneyman have been incredibly helpful in helping me understand the process of buying a house. A friendly and welcoming team who do all they can to help. Definitely recommended, you feel like the team is invested in helping you.
2 years ago
Gurjeet
Really helpful and clear.
9 months ago
Gemma
From first discussions with Tom to being passed over to Lyndsey, the whole process was easy and seamless. Everyone I have dealt with at Moneyman have been really helpful and friendly, which has helped take the stress out of applying for a...
10 months ago
Matthew
Jenny has been extremely helpful throughout the process and resolved any issues quickly. Thanks!
11 months ago
Susan
Very good service over the moon Wayne and Megan no there stuff
1 year ago
Dean
4 weeks and got my offer very good service from Wayne and Megan can not fault them
1 year ago
Chantelle
This company has helped get a mortgage, when we didn't think we could get one the first time, and we have continued to use them the second time and will reuse them again. They are professional and Friendly and communication is fantastic.
2 years ago
Anonymous
Great service
1 year ago
Arrange a free appointment to explore your options for a let to buy mortgage in Derby.
We’ll review your existing mortgage, assess rental income potential, and check your affordability for your next home.
We search through a range of let to buy mortgage deals from different lenders, helping you find the most suitable mortgage for both your rental property and new home.
Once we’ve identified the right mortgage for you, we take care of the entire application process, ensuring all paperwork is handled accurately.
We stay in contact with both lenders to keep things on track.
Once both mortgages are approved, we guide you through the final steps, ensuring everything is in place for your new home while securing your rental property finance.
Our experienced team specialises in Let to Buy mortgages in Derby, offering personalised advice to guide you through every step of the process, ensuring a seamless experience.
As a trusted mortgage broker in Derby, we have access to a wide range of Let to Buy mortgage products.
This allows us to find competitive deals tailored to your needs and financial situation.
You’ll work with a friendly and professional mortgage advisor in Derby, supported by a dedicated case manager who will keep you updated and assist with all the details of your application.
We’re available 7 days a week, offering appointments at times that suit you.
Whether you’re planning your next steps or need quick answers, we’re here to help when it’s most convenient for you.
This popular option involves converting your current residential mortgage into a Let to Buy mortgage.
By letting out your existing property, you can use the rental income to cover its mortgage payments while securing a residential mortgage for your new home.
Lenders will assess your rental yield, which typically needs to cover 125%-145% of the Let to Buy mortgage payments.
This option is ideal for those with sufficient equity in their current home, offering a way to turn it into an investment while purchasing your next property.
With this option, your monthly payments will cover only the interest on your existing mortgage, leaving the original loan amount intact.
This approach keeps monthly costs lower, making it appealing for those managing tight budgets or wanting to maximise cash flow.
It’s crucial to have a robust repayment plan in place, such as savings, investments, or proceeds from selling the property, to pay off the mortgage balance at the end of the term.
This type of mortgage combines repayment of the loan’s capital with interest payments.
Over time, you’ll reduce your mortgage balance, increasing the equity in your rental property.
While monthly payments may be higher compared to an interest-only option, you’ll be building ownership of the property, making it a great choice for those looking for long-term financial stability and an eventual asset free of debt.
Fixed-rate mortgages provide peace of mind by locking in your interest rate for a set term, usually between 2 and 5 years.
This ensures consistent monthly payments, helping you budget effectively while managing two properties.
This option is especially suitable if you’re cautious about potential interest rate increases or want to avoid fluctuations in your payments during the initial period.
Tracker mortgages follow the Bank of England’s base rate, often sitting a few percentage points above it.
Your monthly payments will change depending on fluctuations in the base rate.
While this can result in lower payments during periods of low interest rates, it’s essential to prepare for possible increases.
This option is ideal for those comfortable with market changes and looking for potentially lower initial costs.
Offset mortgages link your savings account to your Let to Buy mortgage.
The savings balance is deducted from the outstanding mortgage amount when calculating interest, reducing the amount you’ll pay overall.
This is a great choice for those with significant savings who want to minimise interest costs while retaining access to their funds for emergencies or investments.
Specialist mortgages cater to those with unique financial circumstances, such as self employed applicants, individuals with adverse credit, or those dealing with complex income structures.
These lenders assess your application based on your overall financial profile, offering tailored solutions to help you achieve your Let to Buy goals.
Read our 29 Reviews
Derbymoneyman.com & Derbymoneyman 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: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk.
© Derbymoneyman 2025.
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Derbymoneyman.com & Derbymoneyman 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: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk.
© Derbymoneyman 2025.
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