Let-to-buy can be a useful route if you want to move home but keep your existing property as a rental. It can also be more complex than a standard move, because two mortgages, rental income and affordability all need to line up.
A let-to-buy case usually involves switching or refinancing your current home onto a buy-to-let basis while arranging a new residential mortgage for the property you want to live in. The equity, deposit, rent, affordability and completion timing all need to be considered together.
Done properly, let-to-buy can give you options. Done without planning, it can create avoidable delays and affordability problems.
We check the estimated value, current mortgage balance, equity, rental potential and whether the property could fit buy-to-let criteria.
Lenders will usually assess whether the expected rent is enough to support the buy-to-let mortgage calculation.
We review the new residential mortgage, deposit route and affordability for the property you want to buy.
The existing property and new purchase need to work together, so the case is reviewed as one joined-up plan.
Let-to-buy can quickly become confusing because there are two sides to the case. We break it down into the current property, the new property and the timing between both.
We look at the property value, outstanding mortgage, equity position and expected rental income.
We assess whether the current home may meet buy-to-let lender requirements and rental calculations.
We check the new residential mortgage, deposit, income, affordability and lender fit for your next home.
If both sides work, we help manage the application route and lender questions through to completion.
A lender may be comfortable with one side of the case but not the other. That is why the current mortgage, rental income, new purchase and affordability all need checking before you rely on let-to-buy as a moving strategy.
Let-to-buy is often used when selling the current property is not the preferred route, or when keeping it as a rental supports longer-term plans.
You may see the existing home as a long-term rental or investment rather than selling it now.
Letting the property may help you move sooner, subject to the mortgage, rental and affordability position.
Some clients explore whether releasing equity from the current home could help fund the onward purchase.
Let-to-buy means you are taking on landlord responsibilities, so the insurance, tax and legal position need considering too.
Some homeowners ask whether they can simply get permission from their current lender to let the property. Others need a full buy-to-let mortgage. The right route depends on your lender, how long you plan to let the property, the mortgage balance, rental income and the onward purchase.
Your existing lender may allow you to let the property temporarily, but this is not guaranteed and may come with conditions or additional cost.
A full buy-to-let remortgage may be needed where the property is being kept as a rental on a longer-term basis.
The lender for your new home will still need to assess your income, commitments and how the existing property is treated.
You should take separate tax and legal advice before becoming a landlord or changing how a property is used.
Let-to-buy can move more smoothly when the key details are ready early. These are the types of things we may ask for when reviewing your options.
Let-to-buy usually means letting out your current home and buying another property to live in. It often involves arranging a buy-to-let mortgage or consent to let on the existing property, alongside a new residential mortgage for the next home.
No. Buy-to-let usually refers to purchasing or owning a rental property. Let-to-buy is when you let your current home so you can buy a new residential property to live in.
Possibly, but it depends on the equity in your current home, expected rental income, your affordability for the new mortgage, lender criteria and how the existing mortgage is handled.
Some lenders may consider the rental position, but the approach varies. The expected rent, rental stress test, existing mortgage and your personal income can all affect the outcome.
If you want to let a property that currently has a residential mortgage, you will usually need permission from your lender or may need to switch to a suitable buy-to-let mortgage. This depends on your lender and plans.
Possibly, depending on the property value, mortgage balance, rental income, lender criteria and affordability. This should be reviewed carefully before relying on it for your onward deposit.
If you let the property, standard residential home insurance may no longer be suitable. You should arrange appropriate landlord or buildings cover before letting the property.
Yes. Becoming a landlord can affect your tax position. We can help with the mortgage route, but you should seek independent tax advice before deciding whether to keep and let your current property.
Speak to City Mortgage Solutions before you commit, so both sides of the move are reviewed together.