Best let to buy mortgage deals

What is a let to buy mortgage?

With a let to buy mortgage, you switch your current residential mortgage to a buy-to-let deal, so you can legally rent out your home. At the same time, you take out a new residential mortgage to buy your next property.

This can be useful if:

• You want to move but keep your old home as an investment
• You’re struggling to sell your home
• You want to benefit from rising property prices in both homes

Some lenders offer let to buy as a package deal, while others will treat it as two separate applications.

Why choose a let to buy mortgage?

Let to buy gives you flexibility and can open up new options. It might suit you if:

• You want to keep your old home as a rental property
• You think your old property might go up in value
• You want to move quickly but don’t want to sell just yet

You’ll need to show that both mortgages are affordable, based on your income and expected rental income from your old home.

How let to buy mortgages work

Homeowners using Let to Buy will need two mortgages: one for the property they want to rent out, and another one for the home they’re going to buy to live in. If you’re considering a Let to Buy mortgage, remember that there are additional Stamp Duty charges to pay when you buy a second home, so you’ll need to factor in these costs when thinking about how much you can afford to spend.

Lenders will usually want to see:

• Proof that your current home will bring in enough rent
• Evidence that you can afford the new residential mortgage
• A strong credit score and reliable income

You’ll also need to have at least 20–25% equity in your current property to qualify for a buy-to-let mortgage.

Who can get a let to buy mortgage?

Lenders will look at a few key things when assessing your application:

• Your current mortgage and property value
• Your income, outgoings and debts
• The likely rental income on your existing home
• Your deposit for the new property

You’ll also need to show that you’re not being overstretched financially. If you're applying with a partner, a joint mortgage might help you qualify more easily. Additionally, most mortgage providers will want to see evidence that you’re buying another property, and your existing home can’t already be listed for sale.

Some Buy to Let mortgage lenders also have strict age restrictions, meaning they won’t offer this type of mortgage to those over or under a certain age. This usually applies to those under 25 or over 75 years old.

How to find the best let to buy mortgage deals

Because you’ll need two types of mortgage at once, it’s a good idea to get advice before jumping in.

We work with over 90 lenders and can help find a let to buy mortgage deal that suits your plans. Some lenders offer linked products, while others specialise in just one side of the deal.

Our advisers can explain the process and work with both mortgage providers to make sure everything lines up properly.

Making repayments on a let to buy mortgage

Your buy-to-let mortgage will usually be interest-only, meaning lower monthly payments. But you’ll still need a plan to repay the full loan later.

Your new residential mortgage will be a repayment mortgage, just like any standard home loan.

You’ll also need to budget for:

• Legal fees
• Stamp duty on the second property
• Letting agent costs
• Landlord insurance

Let to buy can work well, but it’s important to understand the costs and tax rules before you go ahead.