Aldermore announced yesterday they are extending their let-to-buy offering and will now consider applications for the onward purchase of a new residential owner-occupied property, where the existing property is to be let.
The purchase of the new property will be subject to a maximum of 80 per cent loan-to-value (LTV).
Previously, Aldermore allowed borrowers to remortgage their owner-occupied property on to a buy-to-let mortgage.
In addition to the new offer has also made some changes to its residential mortgage and standard buy-to-let mortgage range, including extending its family gifted deposit to cover additional family members (aunts and uncles) and foster parents or legal guardians.
Let-to-buy allows you to keep your existing mortgaged home and let it to somebody while you yourself purchase a new property to move into. It is a type of reverse buy-to-let scheme with the only difference being that when using buy-to-let you are purchasing a property to rent out and not live in.
Charles Haresnape, group managing director for mortgages at Aldermore said the changes “provide greater flexibility for borrowers” as let-to-buy “allows home owners that wish to move, but who do not want to sell their house or are unable to, to purchase another property.”
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