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Let to Buy Mortgages: How to Move Home and Keep Your Investment

For many homeowners in the UK, moving to a new property does not necessarily mean selling the existing one. A Let to Buy mortgage provides a path that allows people to keep their current home as a rental investment while also purchasing a new residence. It can be a powerful strategy in a changing property market especially for those who want flexibility or who see long term value in retaining their original property.

What is a Let to Buy mortgage?

A Let to Buy mortgage refers to a situation where a homeowner switches their current residential mortgage to a Let to Buy arrangement, allowing the property to be legally rented out. At the same time, the owner applies for a new residential mortgage to buy their next home. Lenders typically treat the two applications as linked although each is assessed separately.

This structure gives borrowers the ability to manage two mortgages at once. The rental income from the first property can contribute towards affordability tests. Meanwhile the onward mortgage is assessed like any standard residential application.

Let to Buy is often used when selling would take too long, when market conditions are not favourable or when the homeowner wishes to build a portfolio by retaining a valuable asset.

Let to Buy vs Buy to Let: Understanding the Difference

You hold two mortgages at the same time. Your current home is switched onto a buy to let mortgage so it can be rented out, and you take a standard residential mortgage for the new property you plan to live in.

Although the names are similar, Let to Buy and Buy to Let serve completely different purposes.

Let to Buy

You already own the property
You are moving into another home and want to keep the current one
Your existing mortgage is converted to allow letting
Rental income supports affordability for the onward purchase
Main goal is moving house while retaining the old one

Buy to Let

You buy a property specifically as an investment
There is no onward residential purchase
Rental income determines most of the affordability
Product structure, tax and deposit requirements differ
Main goal is creating or expanding a rental portfolio

Why Buy-to-Let Mortgages Are More Expensive

How Let to Buy Mortgage works in practice

When applying for Let to Buy, both sides of the arrangement need to satisfy lender criteria.

1. Converting the existing mortgage

Your current lender must permit letting. Some lenders require switching onto a Let to Buy or Buy to Let product rather than simply granting consent. A rental valuation is usually required and the expected monthly rental must meet the lender’s rental coverage thresholds.

2. The onward residential mortgage

The new mortgage for your next home is assessed using personal income, credit history and standard affordability checks. The lender will consider the mortgage commitment on the first property although rental income can offset this.

3. Deposit and equity requirements

Let to Buy often requires at least 25 percent equity in the existing property or a similar deposit arrangement. This depends on the lender, the rental yield and the applicant’s financial profile.

4. Timeline and logistics

The two mortgages normally complete on the same day. Coordinating a Let to Buy mortgage requires careful planning because both products depend on each other.

When is Let to Buy Mortgage a good option?

Let to Buy can be a suitable choice for:

Homeowners struggling to sell their current property
People wanting to move quickly without waiting for the market
Borrowers who want to build a property portfolio
Those who believe their current property will grow in value
Applicants who want flexibility without losing an existing asset

It can also benefit people relocating for work who may plan to return to their original property later.

Things to consider before choosing Let to Buy

Although Let to Buy provides strategic advantages, borrowers should consider:

Rental void periods or maintenance costs
Additional stamp duty that may apply for second properties
Tax implications including rental income reporting
The responsibility of managing tenants and compliance
The need for appropriate landlord insurance
Potential impact on affordability for future borrowing

Speaking with a broker who understands both residential and investment lending is essential since Let to Buy blends the two sectors.

How PBSbrokers can help

At PBSbrokers we review your goals, your income and your existing property position to help determine whether Let to Buy is an appropriate approach. Our role is to provide clear guidance and outline both the benefits and the practical considerations while reviewing lender criteria to identify suitable options. We help you understand the financial implications so you can make confident decisions about moving home while retaining your investment.

Disclaimer

Eligibility, rental requirements and lender criteria may change over time. For personalised and up to date advice please contact PBSBrokers.