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SPECIALIST BROKER EXPERTISE. SUPPORT YOU CAN TRUST
Let to buy mortgages
rent out your home when you move
Keep your current home and rent it out when you move. Whether you’re switching your residential mortgage to buy to let, or your property is mortgage-free, you can release equity to help fund your next home. Borrow up to 85% loan to value.
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Request a callback- Call for a no-obligation consultation
- Switch a residential mortgage to buy to let
- Get expert support to completion
£2.4bn+
Finance arranged
Over 80
Lenders on panel
Est. 2012
Centuries of expertise
33,000+
Clients served
SUITABILITY
Is a let to buy mortgage right for you?
This product is suitable for you if:
- You own your own home with or without a mortgage in place
- You want to keep your property and let it out to tenants
- The tenants you will have are not family members
- You want to rent the property permanently
- You do not intend to move back in
- You have at least 15%-25% equity available
Our advisor team will need to know:
- How much money you want to raise for your onward purchase
- What your priorities are from the mortgage
- When any existing mortgage initial rate period comes to an end
- Whether you are investing in personal name or via a limited company
- If you have any adverse credit that might affect your application
CASE STUDY
A real scenario, step by step
How we helped a new landlord switch their residential mortgage to landlord finance.
The situation
Mr B in Hampshire was approaching the end of the initial rate period of their residential mortgage and was planning to buy and move into another property. He had been letting out his property under a consent to let arrnagement with his residential mortgage lender.
Now he was outside the period where early repayment charges would be applicable, Mr B wanted to switch to a buy to let mortgage. He also wanted to raise funds against the equity in his former home to put down as a deposit on his new property. Mr B did not own any other investment properties.
Our approach
We discussed the client's investment plans to understand exactly what he needed from the borrowing. The switch to a buy to let mortgage allowed a change in repayment terms from capital repayment to interest-only.
Where a landlord has no future need to own a property outright, taking a mortgage on an interest-only basis reduces the monthly cost and so allows the client to receive a larger amount of the rent as income, after the mortgage and other costs are paid.
The lender in this instance required the residential mortgage and the buy to let mortgage to complete at the same time, which can be the case with some lenders in this scenario.
The outcome
The case was a classic let to buy scenario. We were able to secure the client a very competitive rate, raise £100,000 as a deposit towards his onward purchase which meant securing borrowing at 75% loan to value.
The numbers | ||||
| Property value | £365,000 | |||
| Loan (75% loan to value) | £273,750 | |||
| Rate | 5-year fixed | |||
| Monthly mortgage payment (interest only) | £1200 | |||
| Monthly rental income | £1895 | |||
| Monthly income less mortgage cost | £695 | |||
Example for illustration, individual results will vary.
PRODUCT OVERVIEW
What is a let to buy mortgage?
The let to buy mortgage process is designed for when you move out of your former home and rent it to paying tenants. It allows you to put a mortgage in place, if there isn't one on your house currently, or move to a buy to let mortgage where the terms and conditions allow the property to be rented out. A residential mortgage is not suitable for a rental property, unless the residential lender is prepared to give temporary 'consent to let'.
It is particularly worthwhile switching to a buy to let mortgage, if you don't have any plans to move back into the property. 'Consent to let' is a temporary arrangement with a residential lender, where a buy to let mortgage gives you a long-term solution to generate income from renting out what used to be your home.
What's more, switching to a buy to let mortgage opens up options to change the terms and conditions of your borrowing. You can even opt to switch from paying back the capital and interest, to just the interest. Many landlords do this if they do not need to own the property outright at the end of the mortgage term, it helps maximise monthly income after costs.
At a glance | |
| Loan purpose | Residential property let to tenants who are not family members |
| Loan type | Capital repayment or interest only |
| Loan term | 5 to 40 years |
| FCA regulated | No - different rules apply to buy to let mortgages |
| Available to | Individuals, limited companies, SPV, LLP |
| Loan sizes, LTV limits and Interest Coverage Ratio requirements are detailed in the Eligibility section below. | |
OUR LENDER PANEL
Access to leading specialist lenders
Our panel spans the full spectrum of the buy to let market - from high street names to specialist and private bank lenders not accessible directly.
WHO THIS IS FOR
Let to buy or let to rent, we have it covered
You may be entering the rental industry for the first time, or using the let to buy dynamic as an existing property investor. Whatever the situation, we will find you the ideal solution.
First-time landlords
Whether you intended to sell and your plans changed, or you always wanted use your home as a first step into letting property, we can help you make the transition. Your scenario is classed as 'consumer buy to let', so you are subject to Financial Conduct Authority protections.
Experienced landlords
Depending on the size of your background portfolio, letting to buy as an experienced landlord may or may not classify the scenario as 'consumer buy to let' in the eyes of some lenders. Rates will not be affected, but you may be afforded additional consumer protections.
Unencumbered property
If you currently own your property outright, with no mortgage, you can still use a let to buy mortgage to raise capital from the equity in your home for your onward purchase, or use the funds for any other legal purpose, subject to lender criteria.
Let to rent
If you are moving out of a home you own, to go on to rent or live with family, friends or a partner, this is a scenario we can help with. You may be moving abroad for a fixed period and don't want your home standing empty. There are all sorts of scenarios we can help with.
Find the right lender for your situation, with our help:
CLIENT REVIEWS
In their own words
Reviews from landlords and property investors we work with across the UK.
Natalie Fowler on Google
Max Limaj on Google
Mark Wade on Google
Monwar Chowdhury on Google
Pravin Mohla on Google
Lucy King on Google
Muhazzal Imam Syed on Google
John White on Google
Alina Virdee on Google
Rupert on Google
Daboyden on Google
Edward Jolleys on Google
Roheel Iqbal on Google
Joe Kennedy on Google
Shaf on Google
ELIGIBILITY
Who can apply?
The criteria in the table represents typical requirements across the mainstream market. Many of our specialist lenders accommodate applicants who fall outside standard eligibility (adverse credit, unusual property types, non-standard income, and more), where mainstream lenders would decline an application.
If you are unsure whether you qualify, the most efficient first step is a conversation with one of our brokers.
Talk to us to check your eligibility:
ELIGIBILITY REQUIREMENTS - STANDARD MARKET | |
| Minimum age | 18 years at application (we have options where lenders set no maximum age at term end) |
| Minimum deposit | You will need at least 15% of your property value in equity as a deposit for a let to buy mortgage |
| Rental income | The expected rent for your property should typically cover between 125%-145% of the monthly mortgage payment and mortgage affordability calculations may use a "stress rate" alongside this rental amount to establish if there is an adequate financial buffer to protect you. |
| Credit history | Clean credit profiles are advantageous, but we do have specialist lenders who can help with some types of adverse credit. |
| Property condition | Your property must be habitable and lettable at the point a mortgage application is submitted, in readiness for the valuation. |
| Property type | Houses or flats intended to be let to a single tenant unit, as a house of multiple occupancy or as a holiday let. |
| Minimum loan | £25,000 with no upper limit, subject to lender affordability calculations. |
| Eligibility varies by lender. Speak to us for an assessment specific to your circumstances. | |
QUICK CALLBACK
Find out if you qualify - in one call
Leave your name and number. A specialist broker will call you back within one working hour for a no obligation consultation.
MARKET INSIGHTS
Navigating the let to buy process
Billy McCluskey
Sales Director, Commercial Trust Limited
Billy McCluskey is Sales Director at Commercial Trust Limited, a UK mortgage broker specialising in buy to let mortgages and specialist lending for property investors. With a background in customer service and mortgage advisory, Billy has worked in the intermediary market since 2018 and brings extensive experience in supporting landlords with complex cases and tailored finance solutions. He focuses on building strong lender relationships and delivering high-quality outcomes for clients navigating the buy to let and specialist mortgage landscape.
Most of the let to buy clients we work with are becoming landlords for the first time, and often their first question is simply whether what they want to do is possible.
Let to buy applications are typically straightforward. While a 15% deposit can be enough with some lenders, having 25% or more can open up access to more favourable interest rates.
Let to buy can also be treated differently from a standard buy to let investment from a regulatory perspective. Where a transaction is classed as consumer buy to let, the client benefits from consumer protections that don't normally apply to business buy to let.
We can also help with more complex circumstances, including adverse credit. One less common complication I've encountered is when someone is downsizing and wants to let out a former home that's larger than the property they're buying. Some lenders may take a different view of this scenario, but we've still been able to find solutions.
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Subscribe freeHOW IT WORKS
Simple process. Specialist outcome.
No lengthy forms before speaking to someone. We start with a conversation.
Initial consultation (30-45 mins)
Tell our advisors about the property you are investing in, your needs and circumstances. If you have credit concerns, chat to us about them, so we can put you with the right lender.
Wide market research (24-48 hrs)
Your advisor will find the best possible deal from a search of thousands of products. They will get a lender decision in principle, this requires soft credit search (occasionally it is a hard credit search).
Tailored solution (15 mins)
Your advisor will call to discuss the product they found for you. You will be presented with one mortgage that is the best match for all your needs and offers you the most cost effective option.
Support to completion (4-12 wks)
On your application, your advisor will submit your mortgage application. Your account manager then does all liaison and administrative work to complete the deal, whilst keeping you updated at every step.
Ready to start? Get in touch now for a consultation with our expert advisors.
PROS AND CONS
An honest assessment
When you are letting out your former home, how you feel about it and the purpose of any funds you raise can be very different and more critical to a more hands-off property investment.
Tell us everything you need the change in dynamic to do for your life and circumstances. It is as important for us to understand your motivations as it is to ensure the right funds are in place.
Benefits:
- Our specialist approach means you get a thoroughly researched financial product suited to your needs and circumstances.
- Moving from a residential mortgage into landlord finance needs a keen eye, we offer competitive deals from high street and specialist lenders.
- With such flexible criteria on offer from our wide panel of lenders, every let to buy mortgage solution feels custom-made.
- We offer a premium level of customer service, which removes all the stress and administrative work from your shoulders.
- Re-consider your mortgage terms and conditions, if you have different requirements for the future.
- Interest-only repayment terms become an option, which can free up monthly income from rent after mortgage costs.
Considerations:
- Let to buy typically requires more equity than a residential mortgage. Having more equity can also increase the range of products and rates available.
- Mortgage interest rates differ when it comes to landlord finance, the risk to the lender is greater, so rates are a little higher.
- Running a rental property comes with administrative tasks beyond arranging a mortgage, make sure you are familiar with everything involved.
- Getting tax advice on whether to invest in personal name or via a limited company can be critical, especially if you are a higher or additional rate tax payer.
- Being clear on your current financial situation, especially any adverse credit, is essential. Credit reports are available from various credit reference agencies.
- Having an idea of how much your property can make in rent is key to the mortgage research we will do for you, letting agents can give you an estimate.
COMPARISON
How does buy to let compare?
Understanding the difference between personal name BTL, limited company BTL and a standard residential mortgage helps you make the right structural decision before you apply.
| FEATURE | PERSONAL NAME BTL | LIMITED COMPANY BTL | RESIDENTIAL MORTGAGE |
| FCA regulated* | No | No | Yes |
| Tax on rental profit | Income tax rate (20% - 45%) | Corporation tax rate (19 - 25%) | N/A |
| Mortgage interest tax relief | No - 20% basic-rate tax credit on finance costs | Yes - full deduction | N/A |
| Stamp duty surcharge | +3% on purchase | +3% on purchase | Standard rates |
| Typical max. loan to value | 80-85% | 80-85% | 90-95% |
| Lender choice | Extensive | Wide and growing | Very extensive |
| Personal liability | Full | Personal guarantees required from directors | Full |
*FCA - The Financial Conduct Authority is the UK's independent regulator for the financial services industry and offers protections to consumers when they take out financial products. Not all let to buy mortgages are categorised as consumer finance products by lenders, so these protections will not always apply.
Have a quick question about starting an application?
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WHY CHOOSE US
Specialist help at a critical time
Renting out your former home is a big step, one you want to get right, first time. Working with our specialists will take all the work off your shoulders and ensure you are in safe hands.
We often help clients raise funds for their future home from the capital they have built up. If this is true of you, it is a critical time. Ensuring an onward house purchase goes through smoothly, where there may be a chain involved, can be a stressful time. We are here to help make switching to a buy to let mortgage an easy transition.
We are specialists in the let to buy mortgage process and have advisors who can guide you to a solution that meets all of your needs. They will do all of the due diligence necessary to get the product selection right for you; all you need to do is tell us what your priorities are.
WE REGULARLY ASSIST CLIENTS WITH:
- No experience letting property
- Switching from a residential to a buy to let mortgage
- Let to rent situations
- Borrowing via a limited company
- Adverse credit
FAQS
Common questions on let to buy mortgages
Deciding to keep your former home and let it out to tenants can be unfamiliar territory for a lot of people, if you cannot find the answer you are looking for here, call or live chat with our advising team.
Can I switch from a residential to buy to let mortgage?
Yes. If you're moving out of your home and intend to rent it to tenants, you can switch from a residential mortgage to an appropriate buy-to-let mortgage, subject to lender criteria. This is commonly known as the let to buy process.
Let to buy is new to me, what support can I get?
How much deposit do I need for a let to buy mortgage?
The deposit amount for a let to buy mortgage is from a minimum of 15% of the property value. You may not need this in cash savings, if there is equity in the property that will cover the deposit amount.
Can I get a let to buy mortgage on an unencumbered property?
Yes. If you own your property outright, you can take out a buy to let mortgage against it, subject to lender criteria, and potentially release some of the equity.
How much rent does a let to buy mortgage require?
Once you let out your home, the rent will need to exceed the mortgage payment, typically by 125%-145%. This is to give you a financial buffer, in case of rental voids or changes in your financial situation.
RELATED GUIDES
Further reading on letting property
Practical guides written by our experts.