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Let to Buy Mortgages
Transitioning from homeowner to landlord. Let-to-buy mortgages simplify the process.
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Your solution in moving home whilst maintaining your current property
Let-to-buy mortgages are a solution for homeowners who wish to move to a new property but don’t want to sell their current one. This arrangement allows them to keep their existing property as a rental investment while financing their new home.
It’s important to carefully consider the financial implications, including rental income, mortgage costs, and potential tax obligations when entering into a let-to-buy arrangement.
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Why homeowners choose a let-to-buy mortgage
Let-to-buy mortgages are increasingly popular among homeowners who want greater financial flexibility and long-term investment potential. For many, selling their current property isn’t the preferred option — especially if market conditions are unfavourable or the home has strong rental demand. Keeping the property and renting it out allows you to benefit from ongoing rental income while still building property equity over time.
Another major benefit is that a let-to-buy arrangement removes the pressure of having to sell quickly. Instead, you can move into your new home without being dependent on a buyer, making the process far smoother. For homeowners looking to grow a small property portfolio, let-to-buy also offers a structured, lower-risk route into property investment without needing to purchase a second home outright from scratch.
Key advantages and risks to consider
A let-to-buy mortgage can offer a range of advantages. By owning two properties, you benefit from rental income, potential capital growth, and the diversification that comes with having multiple assets. Lenders will also assess the property’s rental potential, ensuring your existing home is likely to generate enough income to contribute towards its mortgage repayments.
However, there are also important considerations. Becoming a landlord means taking on legal responsibilities, ongoing maintenance costs, and the possibility of void periods where the property sits empty and generates no income. Let-to-buy mortgages may also require a higher deposit, stricter affordability checks, and compliance with tax obligations on rental income. Understanding these advantages and risks helps you make an informed decision that fits your long-term goals.
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Contact our friendly mortgage advice team today. Sound mortgage advice from the experts at GoMortgage.
Author: Chris Days - Gomortgage
- 5 Mins
- Updated: Nov 17th 2025
Frequently Asked Questions
How is let-to-buy different from buy-to-let?
Let-to-buy allows you to rent out your current home while buying a new one to live in. Buy-to-let is specifically for purchasing a property with the intention of renting it out from the start.
Do I need a certain amount of equity to qualify?
Yes. Most lenders require you to have sufficient equity in your current property so you can release funds or meet loan-to-value requirements when converting it to a rental.
Will I still need to pass affordability checks?
Yes. Lenders assess both your personal affordability for the new residential mortgage and the rental coverage for the let-to-buy loan on your existing property.
Do I need permission to rent out my existing home?
You’ll need a let-to-buy mortgage rather than a standard residential mortgage, as renting out a residential property without the correct product is usually prohibited by lenders.
Are let-to-buy mortgages more expensive?
They can be. Because part of the arrangement is treated like a buy-to-let loan, lenders may require a larger deposit, a higher interest rate, or stricter criteria – especially regarding rental income.
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Speak With A Mortgage Advisor today
Contact our friendly mortgage advice team today. Sound mortgage advice from the experts at GoMortgage.
