Mortgages
We assist borrowers looking to rent out their current home, to purchase a new one with a mortgage. Explore let to buy mortgages with us!
Speak to a Mortgage Lane adviser about your options.
In short
Let to buy means two mortgages completing close together, converting the current home to a buy-to-let and arranging a new residential mortgage, and the sequencing of deposit release and rental calculations decides whether the chain holds.
A let-to-buy case links two mortgages: the existing home is converted to a buy-to-let while a new residential mortgage funds the onward purchase. Deposit release, projected rent, residential affordability and completion dates must be considered together so neither application puts the other at risk. Where you stay in your home and raise the deposit for another property from it, the case is a remortgage to buy a second property instead.
Lenders differ in whether they treat the retained property as a background buy-to-let or assess both mortgages as an integrated transaction. Stress rates, interest coverage calculations, tax assumptions, loan-to-value and rental cover can all affect the available loan and the affordability of the onward purchase.
Choosing compatible lenders and sequencing the applications correctly helps keep both mortgages viable.
| Feature | Detail |
|---|---|
| LTV | 75% LTV |
| Product Fee | £999 Flat Product Fee |
| Rate | 3.85% |
| Fixed Term | 5 years |
The two mortgages are assessed and progressed together so the funding and completion sequence remains workable.
01
The first stage of a let to buy mortgage involves collecting detailed information on your existing property, projected rental income, outstanding mortgage balance, equity position, and onward purchase plans. Your broker will assess both buy to let and residential lender criteria, stress testing requirements, and transaction sequencing before recommending a suitable dual-mortgage structure.
02
Once you confirm you wish to proceed with the recommended let to buy structure, both the buy to let remortgage and onward residential mortgage are submitted to obtain initial lending decisions. No application fees are typically payable at Agreement in Principle stage. Following approval, the case progresses to full underwriting where valuation and lender fees become due.
03
Once the let to buy applications are submitted, each lender will progress through underwriting and arrange a valuation on the existing property and the onward purchase, either upfront or following initial assessment. If both valuations and underwriting checks are satisfactory, formal mortgage offers are issued, allowing the transaction to proceed to the legal stage.
04
Once valuations and underwriting are approved, formal mortgage offers are issued for both elements of the let to buy. Your solicitor then manages redemption of the existing mortgage and coordinates completion so the re-mortgage and onward purchase complete in the required sequence.
| Criteria | Detail |
|---|---|
| Minimum loan | £25,001 |
| Max Loan to Value (LTV) purchase | 95%LTV |
| Max Loan to Value (LTV) re-mortgage | 85%LTV |
| Max term | Up to 40 years, subject to criteria |
| Rate options | Variable, Base Rate Tracker, 2, 3 or 5 year fixed mortgage options |
| Adverse credit | Accepted on selective products on a case by case basis |
| Locations | Available in England, Scotland, Wales and Northern Ireland |
Where the retained property in a let to buy is intended for a specialist rental model or corporate structuring, the re-mortgage must be aligned from outset. We structure re-mortgages to accommodate:
Where multi-occupancy is intended, lender policy must permit HMO use and align with planning position, Article 4 direction, and licensing requirements.
For company or employer-backed tenancy agreements, we select lenders that accept non-standard AST structures and corporate lease arrangements.
Where leasing to a housing association, local authority, or supported housing provider, lender criteria must allow institutional or long-term lease structures rather than standard private ASTs.
Short-term or Airbnb-style letting requires lenders that explicitly permit serviced accommodation, as many mainstream lenders prohibit nightly or rolling occupancy models.
Where the property will operate as a furnished holiday let, we source lenders underwriting against projected occupancy and seasonal income rather than conventional AST stress testing.
Where borrowers wish to transfer the property into a limited company as part of their investment strategy, we advise on limited company buy-to-let remortgage options, lender SPV requirements, and transaction structuring. Tax advice should always be taken separately, but financing must be aligned before incorporation proceeds.
The complete buy to let guide: ICR stress testing with worked examples, limited company vs personal ownership, portfolio rules, valuations, tax mechanics, and every specialist scenario linked.
First time landlord mortgages: how the rental stress test sets your loan, why your tax band matters, stamp duty, company ownership and the Renters' Rights Act.
Remortgaging to buy a second property: releasing equity for a buy to let, second home or holiday let, how both loans are assessed, stamp duty and the risks.
A let to buy mortgage works by remortgaging your current home onto a buy to let product, usually releasing equity for a deposit, while simultaneously arranging a new residential mortgage for your next home. The existing property must meet rental stress tests, and both mortgages are underwritten separately.
Yes, you can get a let to buy mortgage if your existing property meets buy to let rental stress tests and you qualify for a new residential mortgage on your onward purchase. Lenders assess rental income, loan-to-value, credit history, and residential affordability separately.
To get a let to buy mortgage, you must remortgage your current home onto a buy to let product and apply simultaneously for a new residential mortgage. Lenders require a satisfactory rental valuation, appropriate loan-to-value, and full affordability assessment for the new home.
Let to buy mortgages are offered by selected UK buy to let and residential mortgage lenders. Not all lenders permit this structure, as it requires simultaneous underwriting of a buy to let remortgage and a new residential purchase.
A let to buy mortgage is the buy to let mortgage a homeowner takes on their current home so they can keep it as a rental while buying a new main residence with a residential mortgage. The two applications run together: the let mortgage is assessed on the rent at the lender's interest cover ratio and stress rate, and the new residential mortgage on income, with the let mortgage's costs included in the affordability assessment. Keeping the old home usually means the new purchase pays the higher rates of stamp duty in England and Northern Ireland.
Let to buy mortgages work by remortgaging your current home onto a buy to let basis and using released equity as a deposit for a new residential purchase. The existing property must meet rental stress testing, and both mortgages are underwritten independently.
A let to buy mortgage in the UK is a dual-transaction structure where a homeowner converts their current residence to a buy to let mortgage and purchases a new main home with a residential mortgage. Rental income must satisfy UK lender stress rate requirements.
Let to buy mortgages are arrangements that allow homeowners to retain their current property as a rental investment while buying a new home to live in. The existing property is placed on a buy to let mortgage, subject to rental stress testing.
A let to buy mortgage can be suitable for homeowners wishing to retain their property as an investment while moving home. Suitability depends on rental viability, tax position, loan-to-value, and ability to sustain two mortgages under UK lending rules.
Yes, let to buy mortgages are available in the UK through certain lenders. They are structured as a buy to let remortgage on the existing property combined with a new residential mortgage for the onward purchase.
You can let out your home if your mortgage lender permits it. This may involve short-term consent to let or switching to a buy to let mortgage, depending on how long you intend to rent the property.
You can change your home mortgage to buy to let by remortgaging to a buy to let lender. The property must meet rental income requirements, and you must satisfy lender credit and equity criteria.
Yes, you can change your home to buy to let by remortgaging onto a buy to let product, subject to rental stress testing, loan-to-value limits, and lender criteria. Some lenders may offer temporary consent to let instead.
You can do a let to buy mortgage if your current property meets buy to let rental criteria and you qualify for a new residential mortgage. Lenders assess credit history, loan-to-value, rental income, and residential affordability.
Yes, most buy-to-let mortgages allow overpayments, but limits and charges depend on the lender and product terms. Overpayments can reduce the outstanding balance and interest costs, although early repayment charges may apply during fixed or discounted rate periods.
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