Are you in the process of looking for a house to buy? It does not matter whether you are looking for a two-bedroom house, a bungalow or an apartment, everybody needs a mortgage. Of course, this is the loan that is taken out and it is going to help you purchase the property.
But, have you ever considered a buy to sell mortgage before? Not a lot of people are familiar with this option. So, let’s take a closer look at it.
What is a Buy to Sell Mortgage?
First of all, a buy to sell mortgage is an option that a lot of investors will choose. Essentially, it is a short-term finance loan that you can use for purchasing a property that you want to sell in the future. Therefore, it is not a mortgage you choose if you are wanting to buy a second home.
One thing you should realise is that a buy to sell mortgage will require a larger deposit than other options. For example, this can be around 20 to 25 percent. You can also expect to pay higher interest rates.
Who Needs a Buy to Sell Mortgage?
Again, it is mostly investors that are going to be interested in a buy to sell mortgage. The idea is that it is a short-term loan and the property will be sold sooner rather than later for a profit. Indeed, this often means that a standard mortgage is not appropriate for a quick sale.
Mortgages You Can Consider
There are also other options you can consider if you do not think that a buy to sell mortgage is the right type for your situation. Let’s take a look at the other options you can choose.
Another short-term option you have is a bridging loan. This is going to be a way to fill the financial gap between selling a property and buying a new home. Often, the idea is that it is going to tide you over until you can sell your old property and if you have already bought a new one. This is where people can struggle and a bridging loan provides some financial cushioning in this process.
If you plan on living in a property, you can consider a residential mortgage. This is designed as a long-term loan and it is popular with homeowners. Of course, the terms of this mortgage mean that you have to plan to live in the property and make it your home. It cannot be used for renting or other purposes that are mainly commercial.
If you are an investor and you do not want to live in a property, you can consider buy-to-let. Just as this name suggests, you plan on letting it out to another person. A buy-to-let mortgage requires the property to also be habitable from the beginning. It can be a good option if you want to quickly purchase a property.
If you are going to choose a buy to sell mortgage, you can enjoy a fast house sale with Zoom Property Buyer. This is going to allow you to sell the property within seven days and receive cash.