Let to Buy

A let-to-buy mortgage is a financial arrangement where a homeowner rents out their current property and purchases a new home to live in. Essentially, the homeowner may end up taking out two mortgages: a let-to-buy mortgage on their existing property and a residential mortgage on the new home they plan to occupy. This option is often chosen by those who want to move without selling their current home, instead turning it into an income-generating asset.

Unlike buy-to-let mortgages, which are taken out by people specifically looking for a property to let (or to remortgage one they already let), Let-to-Buy mortgages are used when you want to rent out your current home and buy another property to live in.

This solution is suitable for you if:

• You have found a new home but do not want to sell your current property.
• You are unable to sell your current property at the desired price.
• You want to keep your home as an investment.
• You are relocating for a job but may return in the future.
• You are moving in with a partner who already owns property.
• You want to exit a property chain without needing to sell urgently.

Owning two properties entails significant responsibilities, including managing the costs of maintaining both homes. You will be responsible for two mortgages and should be prepared for potential 'void periods' when the rental property is unoccupied. Additionally, let-to-buy mortgage rates tend to be less competitive than residential mortgage rates because lenders perceive them as riskier. When purchasing your next property, be aware that you will face higher Stamp Duty charges, as there are additional costs associated with buying a second home.