12 Reasons To Rent Out Your Property

How can I finance two properties?

Think carefully about your finances and how you will finance two properties simultaneously. If you decide to rent your home, you must speak to your mortgage lender. Some agreements allow you to let out your property on a normal residential mortgage if you relocate temporarily, intending to return. Otherwise, buy-to-let and let-to-buy mortgages are two options you may consider. Taking out a mortgage for a property you intend to rent out is known as a buy-to-let mortgage. They usually come with higher interest rates and are typically interest-only agreements. Another way to finance two properties is by taking out a let-to-buy mortgage. If you're planning to rent out your house, let-to-buy mortgages allow you access to the equity you hold in the property. You can use that equity to remortgage and put down a deposit on a new home. As with any house purchase, you must demonstrate that your income can cover your mortgage payments. You will also be responsible for covering repayments when the property is empty. Seek specialist mortgage advice to determine what you can afford, and discuss the pros and cons in detail.

Think carefully about your finances and how you will finance two properties simultaneously. If you decide to rent your home, you must speak to your mortgage lender.