Let To Buy

Moving homes can be emotional, with a lot of sentiment tied up in your property, you might not want to sell up and move on. Other situations might mean you aren’t in a position to sell your home, leaving you with confusion over the options you have.

If you aren’t looking to sell your home, you could consider a let-to-buy mortgage. Contact our team of professionals who can advise you on all areas of this option and what the next steps might be.

When would I need a let-to-buy mortgage?

Sometimes it’s not possible to take moving home at your own pace, if you can’t wait to sell your property and need to move quickly a let to buy mortgage could be a suitable option.

Let to buy can also be appealing if you want to move in with a partner but maintain ownership of your own property, possibly to retain as an investment.

How is this different from buy-to-let?

Although both suited to individuals wanting to rent out a property, buy to let and let to buy are different. If you wanted to purchase a property for renting out only, you would choose a buy to let mortgage.

What does the let-to-buy process involve?

A let to buy arrangement involves setting up two mortgages. A buy to let mortgage on the property you will rent out and a standard or residential mortgage on the property you will move into. These two mortgages will be taken out with the same lender.

Questions & Answers

Can you let to buy with a normal mortgage?

To allow people to rent your current property you will need to convert your residential mortgage to a buy to let mortgage.

Will there be any additional charges?

Yes, stamp duty is considered an additional cost and will require you to pay a 3% surcharge. A letting agent will also come at an extra cost but can help you take a more hands off approach.

How much can I borrow with a let to buy mortgage?

You will need to meet certain criteria for most lenders which will depend on your rental income. This will likely be a borrowing limit of 75%-80% of your current home value.