Let-to-Buy Mortgage

Updated 30th November 2021.

Let-to-Buy Mortgage Advisors.


Our Mortgage Experts Online accredited advisors are specialists in Let-to-Buy mortgages.

Furthermore, our expert’s knowledge will help you to find the right Let-to-Buy mortgage on the market.

From big high street banks and building societies, to smaller more niche mortgage lenders, there is a lot of choice out there. subsequently, this may feel completely overwhelming to you and you may have no idea where to start.

We can offer you guidance and help you navigate the complex world of Let-to-Buy mortgages.

In addition, the brokers we work with are whole of market and offer completely unbiased advice, ensuring that you get the absolute best deal available.

If you are looking for a Let-to-Buy mortgage advisor, fill out a contact form online or call us now on 0300 124 5655.

Scroll down for more information and FAQ’s about Let-to-Buy mortgages.

Let-to-Buy Mortgage Topics.

What is a let-to-buy mortgage?

In the simplest terms, a let-to-buy mortgage is needed when your current residential property is changing to a buy-to-let mortgage and you usually purchase a new residential property.

For instance, during this process, you can raise cash from your current property to use as a deposit for the new residential property, subject to having enough equity in the property.

Thereby, converting a residential mortgage to a buy-to-let mortgage is becoming increasingly more common.

Because you have lived in the property this now falls under consumer buy-to-let regulations. Therefore, this means that the new mortgage is regulated by the FCA.

Generally, most lenders will want a simultaneous completion, with both properties to complete on the same day.

However, there a mortgage lender who will allow you to switch to a buy-to-let mortgage to raise funds before you purchase your new residential property, in this case allowing you to rent in the interim.

This is where your mortgage expert will be able to advise you on the best way forward.

For the most up to date information on changing mortgage to buy-to-let make an online enquiry or call us 0300 124 5655

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Can I change my mortgage to a buy-to-let?

Yes, however, the criteria around changing to buy-to-let mortgage is tight and clients will need to meet certain criteria.

Your mortgage expert will be able to help you all the way through the process. You will need to get your current property valued to know how much it is worth and how much the rental would be.

We advise using the services of a estate agent who can help you with both of these valuations and get your property on the market ready to be let as soon as you move into your new home.

As an example, the following will be considered when switching to a buy to let mortgage.

  • Age of applicants.
  • Equity in the property.
  • Expected rental income.
  • Overall affordability.
  • Credit profile.
  • Loan to value of the new residential.

Is let-to-buy a good idea?

Let-to-buy mortgages can be a great way to build a property portfolio and earn extra income.

There is the added benefit of receiving monthly rent and any appreciation in property prices in the let-to-buy property as well as your new residential property.

How much deposit will I need for a let-to-buy mortgage?

Most let-to-buy mortgage lenders will want a minimum of 20%. deposit and some even 25% deposit.

Many providers will follow the same deposit rules as a standard buy-to let mortgage, with deposit levels ranging from 15-40%.

The lower the deposit the higher the interest rate.

For the most up to date let-to-buy information make an enquiry and speak to one of our mortgage experts.

What is a consent to let mortgage?

In short, consent to let is an alternative to switching to a buy to let mortgage.

Generally, people want to do this as they do not need any extra funds on a re-mortgage or are maybe tied into a long-term fixed rate and do not want to incur any early repayment charges.

In some instances, customers are extremely fortunate to have tracker deals as low as 1.5% and some even lower than that, and it would therefore not be good advice to redeem these products to switch to a buy to let mortgage.

Some lenders may charge a higher interest rate or a fixed yearly fee to give the consent to let, with some lenders also giving you a certain timescale for switching to a buy-to-let mortgage.

Lastly, it is worth keeping in mind that not all lenders will allow you to have 2 residential mortgages.

This means there will be less options available and lender affordability calculations could restrict the maximum borrowing for your onward purchase.  To read all about remortgages click here

What is the difference between buy-to-let and let-to-buy mortgages?

In simple terms a let-to-buy is a property you already own and now want to rent out.

Ordinarily buy to let mortgages are for you to purchase a property to rent out to tenants.

However, if you are planning to rent to a family member you will need a regulated buy to let mortgage.

This will involve having to take out a new mortgage for your onward purchase and normally completing at the same time as converting your residential mortgage to buy-to-let.

We would advise you to use the same solicitors for both mortgages.

When purchasing any additional property, you will be liable for additional let to buy stamp duty click here to find out more.

Will I need to pay extra stamp duty?

All second properties are liable for the extra stamp duty. This is another reason to seek the advice of a tax specialist before making any commitments.

Below is the stamp duty table.

  • Check with your broker to confirm these are still accurate.
Purchase price of the property Rate of Stamp Duty Additional Property Stamp Duty
0 – £125,000 0% 3%
125,001 – £250,000 2% 5%
250,001 – £925,000 5% 8%
925,001 – £1,500,000 10% 13%
Over £1.5 million 12% 15%

However, If your property is worth £40,000 or less then you wont be liable for any additional let to buy Stamp Duty.

You can currently claim back any additional let to buy Stamp Duty if the property is sold within 3 years.

Can I get a let-to-buy mortgage with bad credit?

Yes, it is possible. The criteria can be tight and there are not as many options to change mortgage to buy to let as there are for purchasing a new buy-to-let property.

There are lenders who will consider an application with previous bad credit. With any bad credit mortgage, the interest rate will be slightly higher.

When changing to a buy-to-let mortgage with bad credit will be harder and likely incur a higher rate of interest.

To read all about bad credit mortgages click here.

Monthly rental income.

No mortgage lender is going to agree to changing to a buy to let mortgage if the investment figures do not stack up.

There will be a minimum percentage of 125-145% of the mortgage payment as a stress test.

The lender does this to ensure that monthly repayments can be met.

Knowing how much your property could be rented for is a vital piece of information any mortgage broker will need.

You can do this by checking similar properties in your local area alternatively you could get a local estate agent round to give you a rental appraisal.

Can I get a let-to-buy mortgage in Scotland?

Yes, the mortgage advisors we work with are vastly experienced in arranging let-to-buy mortgages in Scotland.

Let-to-buy mortgages follow the same principal as the rest of the UK, so changing to buy-to-let mortgage is possible with the right knowledge.

If you are thinking of switching to buy-to-let mortgage, contact us today.

Speak to a let-to-buy mortgage advisor.

There are many lenders available ranging from high street to specialist lenders who will consider applicants looking to convert residential mortgage to a buy-to-let.

Most people go to their own bank, get declined or cannot borrow what they need. However, just because one lender has declined you, do not give up.

Our mortgage experts will look at each case before deciding which lender is right for you and your individual circumstances.

All the mortgage brokers we work with are whole of market and offer unbiased advice. They will have access to all the specialist lenders to really enhance your chances of achieving the let to buy mortgage you need.

Therefore, the expert brokers we work with have experience in dealing with all aspects of specialist mortgages, and importantly using the whole of the market to access the very best deals available.

To find out how we can help call us on 0300 124 5655 or complete our quick enquiry form to speak to a mortgage expert.

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