A Let-to-Buy mortgage allows you to rent out your current home while purchasing a new one to live in. It’s a flexible option for homeowners who want to move without selling — often using the equity in their existing property to fund the deposit on their next purchase.
At SNS Mortgages & Financial Services, we specialise in both Buy-to-Let and Let-to-Buy solutions. Whether you’re relocating, upsizing, or planning to build a property portfolio, we’ll guide you through the process with clear, tailored advice.
What Is Let-to-Buy?
Let-to-Buy is a strategy where you:
- Convert your current residential property into a rental (Buy-to-Let mortgage)
- Purchase a new home using a residential mortgage
This allows you to keep your existing property as an investment while moving into your new home.
Types of Buy-to-Let Structures
There are a few variations depending on your situation:
- Let-to-Buy – Rent out your current home and buy a new one
- Buy-to-Let – Purchase a property purely as an investment
- Let-to-Rent – Rent out your home and move into rented accommodation
While similar in structure, Let-to-Buy is unique because you’ll typically have two mortgages running at the same time.
How Let-to-Buy Works
With Let-to-Buy, you either remortgage your current property or switch it onto a Buy-to-Let product.
In many cases, you can also release equity from your existing home to use as a deposit for your new purchase.
Example:
- Property value: £400,000
- Existing mortgage: £200,000
- New mortgage at 75% LTV: £300,000
- Equity released: £100,000
This £100,000 can then be used toward your next property purchase.
Lenders typically assess:
- The rental income (for the Let-to-Buy mortgage)
- Your personal income (for the residential mortgage)
If the rental income covers the mortgage, many lenders will exclude that debt from your residential affordability calculation.
How Much Can You Borrow?
Most Let-to-Buy mortgages allow borrowing up to 75% loan-to-value (LTV).
Lenders calculate affordability using:
- A notional interest rate (often around 5–6%)
- Rental coverage ratios (typically 125%–145%)
Factors that influence borrowing include:
- Rental income vs property value
- Your tax band
- Fixed-rate term (longer fixes may allow higher borrowing)
Because each lender uses different criteria, working with a broker like SNS Mortgages & Financial Services ensures you get accurate and optimised figures.
Deposit Requirements
For your new residential property, you’ll usually need at least a 10% deposit, although more may improve your options.
You’ll also need to budget for:
- Stamp duty (including second property surcharge)
- Legal and moving costs
- Potential upgrades to your existing property before renting
Stamp Duty on Let-to-Buy
When purchasing a new property while keeping your existing one, you’ll usually pay additional stamp duty.
This means:
- Standard rates apply
- Plus an extra surcharge (typically 3% in many cases)
This is one of the biggest upfront costs, so it’s important to plan ahead.
Do You Need a Minimum Income?
Some lenders require a minimum income, while others are more flexible.
In reality:
- You’ll usually need sufficient income to support your new residential mortgage
- Rental income supports the Let-to-Buy side
The exact requirements vary significantly between lenders — another reason why expert advice matters.
Consent to Let vs Let-to-Buy
An alternative option is Consent to Let, where your current lender allows you to rent out your home without switching to a Buy-to-Let mortgage.
This may be suitable if:
- You’re still in a fixed-rate deal
- You don’t need to release equity
- Your move is temporary
However, it’s usually a short-term solution and may come with conditions or fees.
Interest-Only Options
Most Let-to-Buy mortgages are available on an interest-only basis, provided you have enough equity (typically 25% or more).
This can:
- Reduce monthly payments
- Improve cash flow
- Support long-term investment strategies
Is Let-to-Buy Right for You?
Advantages:
- Move without selling your current home
- Keep your property as a long-term investment
- Potential rental income to cover mortgage costs
Considerations:
- Higher upfront costs (especially stamp duty)
- Managing two properties
- Additional tax responsibilities
- Slightly reduced affordability for your new home
Let-to-Buy works best for those in a strong financial position who want to build wealth through property — but it’s not suitable for everyone.
How SNS Mortgages & Financial Services Can Help
Let-to-Buy can be complex, especially when managing two mortgages and aligning lender criteria.
At SNS Mortgages & Financial Services, we:
- Structure both mortgages correctly from the start
- Compare lenders across the market
- Optimise borrowing and affordability
- Handle the full process from application to completion
- Liaise with lenders, solicitors, and agents
We make sure everything is aligned so your move is smooth and financially sound.
Get Started with SNS Mortgages & Financial Services
Thinking about moving without selling your current home?
Speak to SNS Mortgages & Financial Services today and explore whether Let-to-Buy is the right strategy for you.
⚠️ Important: Your property may be repossessed if you do not keep up with mortgage repayments.
FAQs
Can I have two mortgages at once?
Yes — Let-to-Buy involves one Buy-to-Let mortgage and one residential mortgage.
Do all lenders offer Let-to-Buy?
Most do, but criteria varies and some are more flexible than others.
Can I release equity from my home?
Yes, subject to loan-to-value limits and affordability.y text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
