A Let to Buy mortgage allows a homeowner to convert their existing residence into a rental property and use the released borrowing capacity to purchase a new home. Lenders assess the expected rental income from the current property and apply standard residential affordability checks on the onward purchase.

Let to Buy is different from Buy to Let. Buy to Let is used when someone is purchasing a property solely as an investment. Let to Buy applies when the borrower is moving home and choosing to let out the previous residence rather than selling it.

Eligibility varies, but lenders typically ask for:

• A suitable rental valuation of the existing property
• A minimum equity or deposit position
• A clear credit profile
• Evidence that both mortgage commitments are affordable

Let to Buy can be suitable for homeowners who prefer to retain their property as a long term asset while securing their next home.