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Let to buy mortgages explained
If you’re looking to move but want to keep your current property as a rental, a let to buy mortgage could be the ideal solution. At Mortgage Lane, we specialise in arranging let to buy mortgages for borrowers across the UK. As a whole of market broker, we help you capital raise from your existing home to buy your new one, while renting out your previous property. We work with a wide range of let to buy mortgage providers, including those that can support more complex cases, such as turning your old home into an HMO, letting it as an Airbnb, or helping borrowers with adverse credit. Even if the banks say no, we have access to specialist lenders who can often say yes. You can even complete both transactions simultaneously, making the move smoother and faster. To get started, use our free let to buy mortgage calculator to estimate how much you could borrow and explore your options today. Mortgage Lane is here to make your let to buy mortgage journey simple, whether you’re moving up the ladder or building your property portfolio.
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Let to Buy mortgage criteria
What is a let to buy mortgage?
A let to buy mortgage is a specialist mortgage product designed for homeowners who want to move to a new property but keep their existing home to rent out. Instead of selling your current property to release funds for your next purchase, a let to buy mortgage allows you to refinance your existing home onto a buy to let basis, raise capital for a deposit, and simultaneously secure a new residential mortgage on your onward home.
Let to buy mortgages let you become both a landlord and a homeowner at the same time – without needing to sell your original property. This is particularly useful if you want to move for work, upgrade to a larger home, or relocate, but still hold on to your first property as a long-term investment. We help borrowers secure let to buy mortgages quickly and efficiently by working with a broad panel of let to buy mortgage providers. Many high street banks and specialist lenders offer let to buy deals, but criteria can vary significantly. Some key factors lenders consider for a let to buy mortgage include:
- The rental income potential of your current property
- Your affordability for the new residential mortgage
- Your personal credit profile
- The equity available in your existing property
- Whether you meet minimum income thresholds (required by some lenders)
Unlike standard residential mortgages, a let to buy mortgage usually requires a minimum of 20–25% equity in the property being let. Rental income must also meet specific lender “stress tests” to ensure the property can generate enough income to cover the new buy to let mortgage payments.
Types of let to buy mortgages
If you’re thinking about moving home and want to rent out your existing property as a short-term let, a let to buy mortgage could be the perfect solution. At Mortgage Lane, we specialise in helping borrowers arrange let to buy mortgages even when the plan is to turn their old home into serviced accommodation or use platforms like Airbnb. When you refinance your current home onto a let to buy mortgage, you can release equity to purchase your new residential property while keeping the old one as an income-generating asset. However, if you intend to let it out as serviced accommodation, for example as a holiday rental, corporate stay property, or Airbnb – you’ll need a lender who understands the short-term let model.
We work with a wide range of let to buy mortgage providers, many of whom can support applications for properties intended for serviced accommodation mortgages, serviced apartment mortgages, or even Airbnb mortgages. This is important because not all traditional lenders allow short-term lets under standard buy to let rules. Choosing the right lender ensures you stay within mortgage terms and access the most flexible rates.
Key things to consider when using a let to buy mortgage for serviced accommodation:
- Not all standard let to buy mortgage providers allow Airbnb or short-term lets – specialist lenders are often needed.
- Rental income assessments may differ from traditional tenancy agreements. Some lenders will base affordability on projected occupancy rates and average nightly charges.
- You may need to show evidence of local demand for short stays or provide a business plan if the property is to operate as a full-time serviced apartment.
- Certain areas may require specific licensing or planning permission for short-term lettings, so checking local rules is vital.
Even if your credit history isn’t perfect, Mortgage Lane can help, we have access to lenders who can offer let to buy mortgages, serviced accommodation mortgages, and Airbnb mortgages even for borrowers with adverse credit.
Before you make the move, try our free let to buy mortgage calculator to see how much you could borrow. Whether you’re planning a full-scale serviced accommodation business or just want to maximise rental income from your former home, Mortgage Lane is here to support your next step with expert advice and market-leading mortgage options.
If you’re considering moving to a new home but keeping your existing property as a rental, you might come across two different options: consent to let or a let to buy mortgage. While both involve letting out your current home, they work very differently — and understanding which is right for you is crucial.
Consent to let is when your existing residential lender gives you temporary permission to rent out your home without changing your mortgage. It’s usually a short-term solution, often granted for a year or two. However, consent to let is not a permanent fix, and lenders may charge higher interest rates or impose conditions. It’s often designed for situations like temporary relocations rather than long-term rental plans.
A let to buy mortgage, on the other hand, is a full re-mortgage of your existing property onto a specialist let to buy deal. With a let to buy mortgage, you can release equity from your current property to help fund the deposit on your new home. You also officially switch your old property to a buy to let basis, which is much better suited if you plan to rent it out long-term.
At Mortgage Lane, we arrange let to buy mortgages through a wide panel of let to buy mortgage providers across the UK. Whether you plan to rent your previous home to tenants, set it up as a serviced accommodation, or even turn it into an HMO, we have the expertise to help, including for borrowers with adverse credit where banks may refuse.
When should you choose a let to buy mortgage instead of consent to let?
- If you want to rent your old home long-term.
- If you need to release capital to buy your next property.
- If your current lender won’t grant consent or imposes heavy penalties.
- If you want access to better long-term rental mortgage products.
- If you want to maximise your affordability for the new purchase.
Important: Keeping your old residential mortgage under consent to let can, in some cases, reduce your onward affordability when applying for a new residential mortgage. Some lenders will still count the full mortgage payment as a liability (rather than offsetting it with rental income), which can restrict how much you can borrow for your next home. However, not all lenders treat it this way, and at Mortgage Lane, we know which lenders are more flexible – helping you protect your borrowing potential.
Before making your decision, it’s important to understand your borrowing position properly. Use our free let to buy mortgage calculator to estimate how much you could release from your existing home and how much you could borrow for your onward purchase. Whether you’re stepping up the ladder or starting your property investment journey, Mortgage Lane is here to guide you through every stage of your let to buy mortgage process.
If you’re planning to move to a new property and want to maximise the rental income from your existing home, arranging a let to buy mortgage to convert your old property into an HMO (House in Multiple Occupation) can be a highly profitable strategy. At Mortgage Lane, we specialise in securing let to buy mortgages for borrowers who want to rent their previous home to multiple tenants under HMO mortgages. A let to buy mortgage allows you to release equity from your current home to fund your next property purchase, while simultaneously switching your old property onto a specialist mortgage that suits its new rental use. If you’re converting your property into an HMO, it’s crucial to use the right lenders — many standard buy to let mortgage lenders won’t allow multiple unrelated tenants without specific permission or licensing.
We have access to a wide panel of let to buy mortgage providers, including those that specialise in HMO mortgages. These lenders understand the higher rental yields and different management requirements that come with HMO properties. Whether you’re planning a small HMO (with 3-4 tenants) or a larger licensed HMO, Mortgage Lane can help you secure the right finance even if the high street banks say no.
Important considerations when using a let to buy mortgage for an HMO:
- HMO properties may require special licences from your local council, depending on the number of tenants and the property size.
- Lenders offering HMO mortgages will assess the property’s suitability for multi-let use, often requiring floor plans and rental income projections.
- Some let to buy mortgage providers will base affordability on the potential rental income from multiple tenants rather than just a single tenancy agreement.
If you are planning to change the structure of the property (such as adding additional bedrooms or fire safety features), this could affect the type of mortgage you need.
Even borrowers with adverse credit can still qualify for let to buy mortgages and HMO mortgages through specialist lenders, another area where Mortgage Lane’s expertise really makes a difference. Before you get started, try our free let to buy mortgage calculator to estimate how much you could borrow. Whether you’re building a portfolio of professional HMOs, student lets, or simply want to generate higher rental returns from your former home, Mortgage Lane is here to help you navigate your let to buy mortgage journey with confidence.
If you currently own a property that has tenants in place under a social housing agreement, or you plan to let your old home through a housing association, arranging a let to buy mortgage requires a more specialist approach. We help borrowers secure let to buy mortgages even when the rental plans involve social housing tenants, an area that many high street banks are unable or unwilling to support.
When you refinance your existing property onto a let to buy mortgage, you free up equity to fund the deposit for your next home. However, not all let to buy mortgage providers accept properties that are rented out under social housing schemes or to tenants supported by local authorities. Standard lenders typically have stricter criteria about tenant types, and social housing agreements can be seen as higher risk. To successfully complete a social housing let to buy, the refinance will usually need to be arranged through a specialist lender that is comfortable with these types of tenancy agreements. These lenders understand the different nature of social housing lets – including longer tenancy durations and rental guarantee schemes — and offer mortgage products tailored for this type of arrangement.
Key points to know about social housing let to buy:
- Not all lenders offer social housing mortgages – specialist underwriting is usually required.
- You may need to provide copies of the lease agreement or social housing contract.
- Some lenders may apply different rental stress tests compared to standard private lets.
- You may be required to have a larger deposit or more equity compared to a standard let to buy.
At Mortgage Lane, we work closely with specialist let to buy mortgage providers to make sure you find a lender who will fully support your social housing rental plans — even if your case wouldn’t fit high street criteria.
Before you begin, use our free let to buy mortgage calculator to see how much you could borrow against your existing home and plan your onward move. Whether you’re letting privately, as serviced accommodation, or through social housing, we’ll help you find the right let to buy mortgage to suit your goals.
Let to buy mortgage rates - April 2025 purchase
Let to buy mortgage rates - April 2025 re-mortgage
Let to Buy vs Buy to Let
While they sound similar, there’s a big difference. A buy to let mortgage is for purchasing an investment property you don’t plan to live in. A let to buy mortgage is for a property you already own and lived in, which you are now renting out while simultaneously purchasing a new residential home. We can arrange let to buy mortgages even for more complicated scenarios, such as borrowers wanting to turn their old home into an HMO (House in Multiple Occupation), run it as an Airbnb, or those who have adverse credit history. Because we are a whole of market broker, we can access specialist let to buy mortgage providers that understand non-standard applications, helping where many high street banks might decline. Start with a Let to Buy Mortgage Calculator! If you’re wondering how much you could borrow on a let to buy mortgage, try our free let to buy mortgage calculator. It gives you an instant estimate based on your property’s value, rental income, and your financial profile – helping you plan your next move with confidence. Whether you’re stepping up the property ladder or building a rental portfolio, Mortgage Lane can guide you through every step of securing your let to buy mortgage.
Interest only let to buy mortgage
When planning to keep your old home as a rental while purchasing a new property, many borrowers consider arranging their let to buy mortgage on an interest only basis. Whether you’re looking for flexibility or lower monthly payments, understanding the criteria for interest only options is crucial. At Mortgage Lane, we offer specialist let to buy mortgage advice to help you navigate the rules around interest only lending and find the best let to buy mortgage deals available. For residential purchases (your onward home), let to buy mortgage criteria for interest only can be stricter. Most residential lenders require:
- A significant amount of capital left in the property, often around £150,000 to £300,000 minimum at the end of the mortgage term.
- An approved repayment vehicle (such as investments, pensions, stocks and shares ISAs, or sale of another property) to prove how you will clear the balance at the end of the term.
- Lower maximum loan-to-value (LTV) ratios – typically capped at 50-60% LTV for interest only residential mortgages.
- Stronger overall affordability checks to ensure the borrower is not relying solely on property sale without a clear plan.
In contrast, when it comes to refinancing your existing property onto a buy to let basis through a let to buy mortgage, interest only is far more common and more easily accepted. Most let to buy mortgage deals on the rental property side are offered on an interest only basis without the same strict repayment requirements.
Lenders usually assess:
- Rental income coverage (typically 125-145% of the mortgage payment at a stressed interest rate).
- Minimum personal income levels (some require £25,000+ a year; others have no minimum).
- The property’s suitability for long-term rental.
- Because buy to let lenders are comfortable with the idea that the property may be sold in the future to clear the loan, there’s no need for complex repayment vehicles or heavy equity left in — making interest only let to buy mortgage deals much easier to arrange for your old property.
Let to Buy Mortgage Deposit
Whether you choose repayment or interest only, you’ll still need to meet let to buy mortgage deposit requirements. Typically:
- You’ll need at least 20-25% deposit (or equivalent equity) in the property you are renting out.
- For your new residential property, deposit requirements vary but often start from 10% if affordability and credit criteria are strong.
We provide tailored let to buy mortgage advice to ensure you understand whether interest only is the right fit for your plans and guide you through the let to buy mortgage criteria specific to your situation. Our access to a wide range of specialist lenders ensures you get the most flexible and competitive let to buy mortgage deals on the market.
Not quite sure what you need?
If you aren’t sure what you need, request a call back from one of our expert mortgage advisors!
-
Under 1 hour response time
-
31 days average offer time
Questions on let to buy mortgages
A let to buy mortgage allows you to re-mortgage your current home onto a buy to let basis, release equity, and purchase a new residential property, turning your old home into a rental investment.
The typical let to buy mortgage deposit is at least 20–25% of your property’s value. Some specialist lenders may allow slightly higher loan-to-values, but most prefer you to have substantial equity left in the rental property.
No, you don’t need tenants in place at the time of application. However, you usually need a rental valuation showing the property can achieve sufficient rental income to meet lender affordability criteria.
Yes. Many let to buy mortgage deals for the property you are renting out are available on an interest only basis, especially through buy to let lenders. Residential onward purchases may require repayment or stricter conditions for interest only.
Buy to let involves purchasing a property specifically as a rental investment. Let to buy means converting your existing residential property into a rental while purchasing a new home for yourself to live in.
Typically, rental income must cover 125–145% of the mortgage payment, stress-tested at a higher interest rate. Some lenders will consider personal income alongside rental income if there’s a shortfall.
No, not all lenders offer let to buy mortgage deals. Many require you to go through specialist let to buy mortgage providers who understand the complexities of refinancing and simultaneous onward purchases.
Possibly, but not all lenders allow short-term letting. You would need a lender who supports serviced accommodation or Airbnb mortgages under let to buy mortgage terms. Mortgage Lane can help you find a suitable lender if this is your goal.
The best let to buy mortgage lenders UK vary depending on your personal circumstances. Some of the leading providers include high street banks, building societies, and specialist lenders who offer flexible criteria for simultaneous property moves. Mortgage Lane has access to the full market to find the best lender for your needs.
Absolutely. A let to buy mortgage England is one of the most common types we arrange at Mortgage Lane. Whether you’re in London, Manchester, or anywhere in England, we can help you refinance your current home and move without needing to sell first.
Yes, let to buy mortgage Northern Ireland options are available, though there are fewer lenders offering products compared to mainland UK. Mortgage Lane works with specialist lenders who cover Northern Ireland and understand the local property market.
Yes, in most cases. A let to buy mortgage deposit is typically 20-25% of the property’s value you’re letting out. Your onward residential mortgage might need a 10-15% deposit, depending on the lender’s requirements and your affordability checks.
Yes, but it depends on which part of the transaction you’re referring to. The let to buy mortgage on your new residential purchase is regulated by the Financial Conduct Authority (FCA), because it involves securing a mortgage on the home you will live in. This means lenders must follow strict affordability assessments, responsible lending rules, and consumer protections.
Mortgage Lane Limited are authorised and regulated by the Financial Conduct Authority for credit broking and mortgage advice (FCA 937192).
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up with repayments on a mortgage or any other debt secured on it.
We are a credit broker, not a lender. We work with lenders across the whole of the market, who typically pay us a commission. The amount of commission received varies between lenders.
Registered address: 12 Corporation Road, Newport, NP19 0AR
With a let to buy mortgage, you refinance your current residential property onto a buy to let mortgage and simultaneously arrange a new residential mortgage for your onward purchase. Rental income from your old property often supports the affordability assessment.
Yes, it’s possible. Some let to buy mortgage providers specialise in helping borrowers with adverse credit. Mortgage Lane has access to these lenders and can find solutions even if high street banks say no.
Affordability is based mainly on expected rental income from the property you are letting out, alongside the standard affordability checks for your new residential mortgage.
Most lenders cap let to buy mortgages at 75-80% LTV for the property being rented out. Your onward residential purchase can often go up to 90-95% LTV depending on your circumstances and lender criteria.
The best let to buy mortgage deals depend on your credit history, income, property type, and plans for the rental property. Mortgage Lane can search the entire market to find you the most competitive option available.
No, once you switch to a let to buy mortgage, the property must be let out. Living there yourself would breach the mortgage terms unless you refinance back to a residential product.
Yes, using a let to buy mortgage calculator can give you a quick estimate of how much you could borrow against your old home and what deposit you may need for your new residential purchase.
The let to buy mortgage meaning refers to refinancing your current residential property onto a buy to let basis while simultaneously arranging a new residential mortgage to buy another home. It allows you to rent out your old home and move into a new one without selling.
Yes, you can arrange a let to buy mortgage Scotland. The process works similarly to the rest of the UK, although you’ll need to consider Scottish property laws, valuations, and legal requirements. Mortgage Lane specialises in handling let to buy cases throughout Scotland.
Yes, let to buy mortgage Wales options are widely available. Whether you’re looking to let out your old home in Cardiff, Swansea, or rural areas, Mortgage Lane can arrange let to buy solutions suited to the Welsh housing market and lending criteria.
When taking out a let to buy mortgage, you’ll likely pay the higher rate of stamp duty because you’ll own two properties at the same time. This surcharge is currently 3% on top of the standard rates across England, Wales, and Northern Ireland. In Scotland, an Additional Dwelling Supplement (ADS) applies instead. It’s crucial to factor let to buy mortgage stamp duty into your overall moving costs.
Yes, that’s the main purpose of a let to buy mortgage. It allows you to re-mortgage your existing home into a buy to let mortgage and release funds to purchase your new home – without needing to sell your first property.