Let to Buy Mortgages
Let to buy mortgages let you move to a new home while keeping your existing property as a buy-to-let investment - arranging the BTL mortgage on the retained property and the residential mortgage on the new purchase simultaneously.
Move home without selling your existing property
Let to buy is the strategy of keeping your existing residential home as a buy-to-let investment when you move to a new property. This requires two simultaneous mortgage applications: a consent to let or BTL remortgage on the retained property, and a residential mortgage on the new purchase - both arranged to complete at the same time. Specialist let to buy lenders and a broker experienced in simultaneous applications are essential.
Let to buy - every element managed simultaneously
Consent to Let vs BTL Remortgage
If the existing property has a residential mortgage, you must either obtain consent to let from the existing lender (allowing the property to be rented with the existing mortgage) or remortgage to a BTL product. Consent to let is simpler but not always granted. We advise on the right route.
Retained Equity and New Deposit
The deposit for the new property purchase typically comes from the equity in the existing property - released via remortgage to a BTL product - or from savings. We model the deposit available from the equity release alongside the new residential mortgage affordability.
Affordability Assessment on Both Mortgages
The new residential mortgage is assessed on personal income against both the new mortgage payment and the existing BTL mortgage (at stressed ICR). The BTL mortgage on the retained property is assessed on the rental income. Both must pass simultaneously.
Simultaneous Completion
Let to buy requires both mortgages to complete simultaneously - or in the right sequence. The coordination of two lenders, two sets of solicitors, and two valuations requires experienced broker management to keep both transactions on track.
Stamp Duty Implications
Retaining an existing property and purchasing a new one means the new purchase is treated as an additional property for SDLT purposes - the 3% additional property surcharge applies. We factor this into the deposit and funding calculation.
Portfolio Growth Foundation
Let to buy is often the starting point of a buy-to-let portfolio. The retained property becomes the first investment property, with the equity released providing the deposit for the next acquisition. We advise on structuring the initial let to buy as the foundation of a longer-term investment strategy.
How it works
Existing property assessment
We review the existing mortgage, property value, and equity available. We advise on consent to let versus BTL remortgage and model the equity available for the new deposit.
Simultaneous lender selection
We identify lenders for both the BTL element on the retained property and the residential mortgage on the new purchase - ensuring both can complete simultaneously and that the affordability passes on both sides.
Coordinated applications
Both applications are submitted simultaneously. We manage the two lenders, two valuation appointments, and two sets of solicitors - keeping both transactions aligned to the same target completion date.
Simultaneous completion
Both transactions complete on the same day - or in the right sequence where the BTL drawdown provides the deposit for the residential purchase. Typical timeline: 6 to 8 weeks for both transactions.
Planning a let to buy?
Tell us your existing property position and your new purchase plans. We model both mortgages and manage the simultaneous application - same working day response.
Frequently asked questions
Can I rent out my home without remortgaging to a BTL product?
Sometimes. Consent to let from your existing residential lender allows you to rent the property with the existing mortgage. Not all lenders grant this, and conditions apply. Where consent is denied or unavailable, a BTL remortgage is required.
How much deposit can I release from my existing property?
The equity released depends on the property value and the maximum BTL LTV (typically 75%). A property worth £400,000 with a £150,000 mortgage (37.5% LTV) can support a BTL remortgage to 75% LTV, releasing up to £150,000 as deposit for the new purchase.
Do I pay extra stamp duty when doing a let to buy?
Yes. Retaining the existing property means the new purchase is treated as an additional property for SDLT - the 3% additional property surcharge applies on the full purchase price. This must be factored into the total funding calculation.
Does the BTL rental income help me afford the new residential mortgage?
The BTL rental income is not typically included in the new residential mortgage affordability assessment. However, if the BTL is fully self-servicing (rental covers the BTL mortgage payment at stressed ICR), most lenders do not count the BTL mortgage as a liability.
Can I do a let to buy with adverse credit?
Yes - with specialist adverse credit lenders for both the BTL and residential elements. The right lender panel for adverse credit let to buy is narrower than for clean credit cases, but options exist.