Let to Buy Mortgages UK 2025:How They Work& Who They Suit

For many UK homeowners, selling a property before moving isn’t always the best option. You may want to keep your home as an investment, generate rental income, or simply avoid a slow property market. A Let to Buy mortgage allows you to do exactly that.

With a Let to Buy mortgage, you remortgage your current property to a Buy to Let, rent it out legally, and take a new residential mortgage for your next home. In this guide, we’ll explain how Let to Buy works in the UK, what lenders require, and whether it’s the right solution for you in 2025.

Key Takeaways: Let to Buy Mortgages

• A Let to Buy mortgage lets you rent out your current property while buying a new one.
• You’ll usually hold two mortgages: one Buy to Let and one residential.
• Benefits include rental income and flexibility, but risks include landlord responsibilities and SDLT surcharges.
• Let to Buy mortgage lenders assess rental cover, deposits, and credit history.
• Alternatives include Consent to Let, standard Buy to Let, or selling your home first.

What Is a Let to Buy Mortgage in the UK?

A Let to Buy mortgage is a product that allows you to:

1. Remortgage your current home onto a Buy to Let basis.
2. Rent out that property legally, with rental income covering the mortgage.
3. Take out a new residential mortgage on the home you want to live in.

This lets you move without selling, keeping your old property as a long-term investment.

How Does a Let to Buy Mortgage Work?

Here’s a typical Let to Buy scenario:

• You own a flat with a residential mortgage.
• You want to move into a bigger property but don’t want (or can’t) sell quickly.
• You switch your flat to a Let to Buy mortgage, making it legal to rent out.
• The rental income is used by the lender to assess affordability.
• You then take a new residential mortgage on your onward purchase.

The result: two mortgages — one on your rental property, one on your new home.

Eligibility Checklist: Do You Qualify for a Let to Buy Mortgage?

You may be eligible if you:

• Already own a residential property in the UK.
• Want to keep your current home and rent it out.
• Can provide a deposit of 10–15% for the new home.
• Have 25% equity (or more) in your existing property.
• Pass lender rental coverage tests (125–145%).
• Have a clean credit history.

Real-World Case Study

At WIS Mortgages, we worked with a client who needed to release 25% equity from his flat to move closer to a grammar school. Standard lender stress testing limited him to 20%, but by using top slicing and a specialist lender, we secured the full 25% and saved him over £10,000 in stamp duty and £2,600 annually in tax.

Who Can Get a Let to Buy Mortgage in the UK?

Let to Buy can be a good option for:

• Homeowners struggling to sell in a slow market.
• Families needing more space while keeping their old property as an investment.
• Couples moving in together where one partner already owns a home.
• Workers relocating but planning to return in the future.
• Landlords building a portfolio starting with their current property.

Benefits of Let to Buy Mortgages

• Flexibility – Move without selling your old home.
• Rental income – Your existing property generates monthly income.
• Property growth – Retain two homes, benefitting if prices rise.
• Break the chain – Avoid delays from simultaneous buying/selling.
• Step into Buy to Let – Start your landlord journey with a property you already own.

Risks and Drawbacks

• Two mortgages – Managing two loans is more financially demanding.
• Rental voids – Empty periods mean covering costs yourself.
• Landlord duties – Safety checks, deposit protection, and compliance with UK rental law.
• Stamp Duty Land Tax (SDLT) – Additional 3% surcharge applies on the new property.
• Higher rates – Buy to Let mortgages usually have higher interest than residential ones.

Let to Buy Mortgage Lender Requirements in the UK (2025)

Let to Buy mortgage lenders look at both you and the property. Common criteria include:

• Rental coverage ratio: Rent must cover 125–145% of mortgage payments.
• Loan-to-value (LTV): Maximum 75% LTV on the Let to Buy property.
• Deposit for new home: At least 10–15%, ideally more.
• Age limits: Mortgage must usually end by age 70–75.
• Credit history: A clean file is preferred, though specialist lenders may be flexible.

Comparison: Let to Buy vs Alternatives

Tax and Legal Considerations

• SDLT: 3% surcharge for second homes (refunded if you sell within 36 months).
• Capital Gains Tax (CGT): Payable on profits when selling your rental property.
• Income Tax: Rental income must be declared to HMRC.
• Landlord responsibilities: Gas safety checks, deposit protection, Renters Reform Bill compliance.

Step-by-Step: Applying for a Let to Buy Mortgage

1. Review affordability and deposit requirements.
2. Get a rental valuation for your existing property.
3. Remortgage current home to a Let to Buy mortgage.
4. Apply for a residential mortgage on your new home.
5. Factor in SDLT and legal responsibilities.
6. Work with a broker to access the best Let to Buy mortgage lenders.

FAQs About Let to Buy Mortgages

Which lenders offer Let to Buy mortgages in the UK?
A mix of high-street banks and specialist lenders — brokers can identify the right one for you.

What deposit do I need for a Let to Buy mortgage?
Usually 25% equity in your old property and 10–15% for your new home.

Can I remortgage to Let to Buy?
Yes. You remortgage your current property to a Buy to Let product, making it legal to rent out.

Do I need tenants lined up before applying?
No. Lenders use a surveyor’s rental valuation to assess affordability.

Are Let to Buy mortgages more expensive?
Yes. Rates and fees are higher than standard residential mortgages.

Is a Let to Buy Mortgage Right for You?

A Let to Buy mortgage is a powerful way to move home while keeping your old property as an investment. It offers flexibility, rental income, and growth potential — but also comes with tax, cost, and landlord responsibilities.

At WIS Mortgages, we specialise in Let to Buy mortgages and work with lenders who understand these arrangements.

Speak to WIS Mortgages today to explore your Let to Buy options in 2025.

Important

Your home may be repossessed if you do not keep up with repayments on your mortgage.

This article is for general information only and does not constitute financial advice. Always speak to an FCA-authorised adviser before making financial decisions. Product availability and criteria are subject to change. Accurate as of September 2025.