So, you’re thinking about moving to another property, and maybe considering renting out your old home when you leave.

You could either use your own savings/investments or re-mortgage the existing property to fund the deposit required for your new home. This type of lending is called a ‘let to buy’ mortgage. Your old home will now be assessed as an investment and your new purchase considered your main residence.

This, of course, depends on there being sufficient equity in the current residence and your income multiples satisfying the lender.

The let property mortgage would be assessed on rental income, whereas the main residence new mortgage based upon income multiples. More people are looking at this situation to start their entry into becoming private landlords, with the intention of doing the same again when the time is right. Once again taking the correct professional advice is vital, as no one wants to be financially stretched across two properties.

We would always recommend a full mortgage review at the decision-making stage, looking at the applicants’ risk and reward attitude, together with all the usual financial considerations, including looking at potential rental voids, and increased insurance costs.

This is an area of specialised lending, so as a whole of market adviser our aim is always to find the most appropriate loan product to meet the client’s own personal situation.