What Is a Let to Buy Mortgage?

Let to buy lets you keep your current home as a rental property while buying a new home to live in. You convert your existing mortgage to buy-to-let (or get consent to let) and take out a new residential mortgage on another property. This gives you two mortgages - a BTL on your original home and a residential on your new home. The rental income helps cover the BTL mortgage while you live in your new property.

Learn more about buy to let mortgages in our detailed guide.

Learn more about remortgage guide in our detailed guide.

Stamp duty calculator

Learn more about stamp duty calculator in our detailed guide.

Portfolio landlord mortgages

Learn more about portfolio landlord mortgages in our detailed guide.

What is a let to buy mortgage?

Let to buy is a strategy where you convert your current residential mortgage to a buy-to-let, then take out a new residential mortgage on a different property. It lets you keep your existing home as a rental investment while moving to a new home. You end up with two mortgages - one BTL and one residential.

Can I afford two mortgages for let to buy?

Lenders assess: your income to support the residential mortgage, and whether the rental income covers the BTL mortgage (typically 125-145% of the payment). Your deposit for the new home often comes from equity in your current property or savings. Both mortgages' affordability is assessed.

Do I need consent to let for let to buy?

You have two options: 1) Consent to let from your current lender (temporary permission to let while keeping your mortgage), or 2) Full BTL remortgage (switch to a buy-to-let product). Consent to let is often quicker but may have time limits. BTL remortgage is more permanent.

What deposit do I need for let to buy?

For the new residential property, typically 5-15% deposit. For the BTL element, you usually need at least 25% equity in your current home. Many people release equity from their current home to fund the deposit on their new one, which is part of the let to buy arrangement.

What are the tax implications of let to buy?

Key tax considerations: rental income is taxable, you'll pay 3% stamp duty surcharge on the new property (additional property rate), capital gains tax applies when you eventually sell the rental, and mortgage interest relief is restricted for landlords. Seek tax advice before proceeding.

Quick Answer

How Does Let to Buy Work?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

You convert your current home's mortgage to buy-to-let and rent it out, while taking a new residential mortgage on a different property to live in.

Let to buy is a two-mortgage strategy for homeowners who want to keep their current property as an investment rather than selling it when they move. It works by arranging two mortgages: your existing home is converted to a buy-to-let mortgage (or you get 'consent to let' from your current lender), and you take out a new residential mortgage on the property you're moving to. The rental income from your original home helps cover its mortgage, while your salary covers your new residential mortgage. This approach is popular with people who have significant equity in their home, expect property prices to rise, or live in high-demand rental areas.

Your properties may be repossessed if you do not keep up repayments on your mortgages. Being a landlord has responsibilities and risks. Seek tax advice.

Key Points

1Keep your current home as a rental investment
2Convert existing mortgage to buy-to-let
3Take new residential mortgage on new home
4Rental income covers BTL mortgage
5Need 25%+ equity in current property
63% stamp duty surcharge applies to new property

Eligibility Criteria

Sufficient equity in current home (typically 25%+)
Income to support new residential mortgage
Rental income to cover BTL at 125-145% ratio
Current home suitable for rental (location, condition)
Deposit available for new property (often from equity release)

Typical Timeframe

Let to buy transactions are more complex as two mortgages need coordinating. Allow 8-12 weeks. Ideally, work with a broker who can arrange both mortgages and coordinate timings. The BTL conversion and new residential purchase often complete simultaneously.

Next Steps

1Calculate equity in your current home
2Get rental valuation for current property
3Assess if rental income covers BTL mortgage
4Speak to broker about coordinating both mortgages
5Get tax advice on rental income and stamp duty

Ready to discuss your options?

FCA regulated advice tailored to your situation

Get Let to Buy Advice Call Us

How Does Let to Buy Work?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

Related Questions

How Let to Buy Works

Let to Buy: Pros & Cons

Let to Buy Example

Current Home (becomes BTL)

New Home (residential)

People Also Ask

What Our Clients Say

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

Related Questions

How Let to Buy Works

Let to Buy: Pros & Cons

Let to Buy Example

Current Home (becomes BTL)

New Home (residential)

People Also Ask

What is a let to buy mortgage?