Next Move combined with Buy to Let

2.10.2006

Clients who had been first time buyers five years ago have seen their property rise dramatically in value and what was an original 90% mortgage now represents 50% of the propertys increased value. This couple will have increased their personal incomes and see this as the right time to move up the housing ladder. They are also conscious of their future need for a pension on retirement but have little faith in traditional investments which do not necessarily keep pace with inflation. They have been impressed by the publicity on Buy to Let and feel that this could be the best way to provide income when retired. The clients will have completed a fact find so that ACL can advise them appropriately taking into account their affordability of the new Main Residence mortgage and a new Buy to Let mortgage on their present property from which they will raise the deposit to buy the new Main Residence having allowed for the rental and expenditure on their existing property when let. Many of our clients have used this method of utilising the equity they have in their existing properties to fund further property purchases and build a substantial property letting portfolio.

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