MOVING, BUT KEEPING YOUR HOME
Let to buy mortgages
Ready for your next home, but not ready to let go of the one you have? With a let to buy mortgage, you rent out your current home and buy your next one, keeping the property you love and building an income from it at the same time.
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What is a let to buy mortgage?
Let to buy means keeping your current home and renting it out, while buying your next home to live in. It usually involves two mortgages: your current home moves onto a buy to let mortgage, and your new home is bought with a residential mortgage. Often, equity released from your current home helps with the deposit on your next one.
Why people choose a let to buy mortgage
Keep a home that means something
Your first home, where your family grew up, or a property you'd like to pass on to your children one day.
Outgrown your home
You need more space now, but don't want to sell the home you already own.
Build a rental income
Turn your current home into your first investment property while you move up the ladder.
No need to sell right now
Move when the time is right for you, without waiting for a buyer or accepting a low offer.
How a let to buy mortgage works
1. We check the rent your current home could earn and how much equity you have
2. Your current home is remortgaged onto a buy to let mortgage, releasing equity if needed
3. Your new home is bought with a residential mortgage
4. We line both up so everything completes together
Things to know before you get a let to buy mortgage
✓ Equity: lenders usually want at least 20% equity in the home you're letting out
✓ Rent: the expected rent needs to cover the buy to let mortgage by the lender's set margin
✓ Stamp duty: because you still own your current home, the 5% surcharge for additional properties applies to your new purchase
✓ Tax and responsibilities: rental income is taxable, and you'll have landlord duties. Speak to an accountant before you decide
Moving out for a while? Consent to let
If you only plan to rent out your home for a limited time, for example while working abroad, you may not need a let to buy mortgage at all. Consent to let is permission from your current lender to rent out your home on your existing mortgage.
It's usually granted for 12 to 24 months at a time and may come with a fee, a higher interest rate, or both. Lenders often want you to have owned the home for a minimum period, and not every lender offers it. Never rent out your home without permission: it can breach your mortgage terms.
Real let to buy results
LET TO BUY
Keeping the home where it all began
Our clients came back to us with a happy problem: their family had outgrown their first home. It was where their family started and so many memories were made, and they wanted to keep it and one day pass it on to their children.
We arranged a let to buy mortgage, so their first home became a rental property and they moved into a bigger family home, without having to say goodbye to the old one.
CONSENT TO LET
A dream job abroad, just a year after buying
Our clients had bought their home only a year earlier when an opportunity to work abroad came up, too good to miss. With a 90% loan to value and such a recent purchase, they worried their lender would say no.
We put their case to the lender and secured consent to let, so they could rent out their home and take the opportunity without selling.
Every case is different. All mortgages and consent to let are subject to lender criteria, rental assessment and valuation.
Let to buy mortgage FAQs
Do I pay the stamp duty surcharge with a let to buy mortgage?
Usually, yes. Because you still own your current home when you buy the new one, the 5% surcharge for additional properties applies to your new purchase.
How much equity do I need for a let to buy mortgage?
Most lenders want at least 20% equity in the home you're letting out. More equity can also help fund the deposit on your next home.
What's the difference between let to buy and consent to let?
A let to buy mortgage moves your current home onto a buy to let mortgage for the long term. Consent to let is temporary permission from your current lender to rent out your home on your existing mortgage.
Can I rent out my home without telling my lender?
No. Letting without permission can breach your mortgage terms and lead to penalties. Speak to us first and we'll find the right route.
Will a let to buy mortgage affect how much I can borrow for my next home?
If the rent comfortably covers the buy to let mortgage, it usually has little impact. We'll work out both sides together so you know where you stand.
Thinking of more rentals? See our buy to let mortgages and remortgage pages. For official guidance, read GOV.UK on renting out a property and stamp duty rates.
Your home may be repossessed if you do not keep up repayments on your mortgage.
BOOK YOUR FREE CONSULTATION
Moving, but not ready to sell?
Tell us about your current home, what it could rent for and what you’d like to buy next. We’ll show you whether let to buy or consent to let works best.
Free 30-minute consultation
✓ Pick a time that suits you
✓ Phone or video call
✓ No obligation to proceed
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