Getting a buy to sell mortgage is more complicated than regular mortgage products. First of all, we want to clarify that buy to sell or buy to sale is not a specific mortgage product offered by mortgage lenders. It is only a term used for a buyer’s behaviour of buying a property with the intention to sell it quickly.

Buy-to-sell mortgages are considered best for short-term property finance where a borrower is interested in quickly buying and selling the property and making some profit. In this article, we will explain ‘buy to sell mortgages’ in detail.

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What is the meaning of the term ‘buy to sell mortgage’?

A buy-to-sell mortgage is a term used for a type of mortgage that allows you to borrow money from your bank or building society to purchase an existing property and sell it in a short period. There are many reasons why people choose to use a buy-to-sell loan. For example, if you have inherited a house but need to move out within a few months, then a buy-to-sale mortgage is ideal as you can quickly sell the property without waiting for the usual six-month cooling-off period. Another reason why someone may choose to take out a buy-to-sale mortgage is that they wish to make a quick profit on their investment. If you plan to invest in a property and intend to sell it within a year, then a buy-to-sale mortgage could be the right option.

Some lenders can help, but high-street lenders may not approve your mortgage application. However, an experienced mortgage broker can help you with your mortgage application and connect you with the right lender.

How does a buy-to-sell mortgage work?

When you apply for a buy to sell mortgage, you will usually be asked to provide proof of income such as payslips and bank statements. This information is needed so that your lender can calculate how much you can afford to pay back each month. You will also be asked about any other debts you might have, including credit cards, loans and overdrafts. Your lender will also ask you to complete a financial questionnaire which will give them a better understanding of your finances. Once you have completed these forms, your lender will decide whether or not to offer you a mortgage based on your answers. If they do agree to lend you money, they will send you a formal letter confirming your application. The amount you are approved for depends on several factors, including your current debt levels, your monthly income and your ability to repay the loan.

The process of getting a buy to sell mortgage is similar to regular mortgages; however, if you hire a market broker, the chances of application approval are higher.

What are the most common options available for buy to sell mortgages?

If you are interested in buying or selling a property quickly, you will have three major financial options.

Buy to sell short-term loans: Property flipping is becoming popular, and as a result, there are now more financial opportunities for property investors. If you want to buy a house within 12 months or less, then a bridging mortgage might be an alternative to consider.

Bridging loans usually carry higher interest than conventional mortgages, but they can help you to buy a property that isn’t eligible for a mortgage. You won’t have to pay any fees for early repayment, and you won’t have to wait six months before selling.

Refurbishment Finance:

A refurbishment mortgage option can be useful for buying a rundown property with the aim of refurbishing the property and selling it for a higher profit. Refurbishment mortgages are assessed on the actual value of the house or a property post refurbishment. It means, that you can borrow more amount as compared to standard mortgages. The standard mortgages are assessed on the present value of the property and not future potential value.

Flexible Mortgage Option: 

A flexible mortgage is the type of loan that gives the borrower more options towards the repayments. In most cases, a flexible mortgage option has very low or no early repayment fees. An early repayment fee when a mortgage lender will penalise you for completing your mortgage term early.

This is why a flexible mortgage can be a good financing decision for buying and selling a property frequently. Such mortgages can be used for both buy-to-let and residential properties. It is important to note here that these properties must be habitable to qualify for the mortgage.

Next Steps: 

Buying and selling a property is not an easy task and there are many things that need to be considered. As the specialist mortgage broker, we can help you to simplify your mortgage process. We are working with various specialist mortgage lenders who can provide you with the best mortgage deals. All we need is to go through your documentation and check your mortgage affordability criteria. Feel free to contact our team of expert mortgage advisors.

About The Author

mortgage broker damian youell

See some of Damian’s client reviews below

Damian is an experienced mortgage broker, founder of Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.

He started as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.

Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.

At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.