Let to Buy Mortgages

5 January 2022

If you want to let your current home and buy a new home to live in then this is known as ‘let to buy’.

What is a let to buy mortgage?

A let to buy mortgage enables you to let your current home, repay your existing mortgage and raise a deposit to buy a new residential home. You can remortgage your current mortgage to a let to buy product.

How much can I borrow?

The good news is that most lenders use anticipated rental income to determine how much they will let you borrow. They don’t use your earned income for this, so this gives you more overall borrowing potential and buying power for your new property.

Can I raise a deposit from my current property to buy a new home?

Yes, if you have equity available then you can release money out of your current property and use this as a deposit to buy your new home. Let to buy mortgages are usually available up to 75% of the property value.

What are the advantages of a let to buy mortgage?

If you are a homeowner and want to move home then let to buy enables you to move quickly without having to market or sell your property. You can use it to raise a deposit and this can help with overall affordability. In a fast and competitive housing market this can really help you by making you more attractive as a buyer being ready to proceed. It also gives you the opportunity to become a landlord and you can even begin building yourself a property portfolio.

What are the disadvantages of let to buy mortgages?

The main disadvantage of letting to buy is that you will most likely have to pay second property stamp duty rates for your onward property purchase. This will need to be factored into your moving costs and your mortgage adviser will help you with this by taking you through a full home mover budget plan to ensure that your completion goes as smoothly as possible.

If the property that you let increases in value then you may be liable to capital gains tax on the profit made when you sell. Ask your mortgage broker about this.

You will also have to declare your rental income from the property on your tax return and you may have to pay income tax on part of this. Your mortgage broker will run through this with you and can introduce you to a specialist letting Accountant.

What else do I need to know about let to buy?

When you let your property you will need to make sure that you comply with landlord legal regulations. This includes property checks, maintenance, tenant deposits and tenancy agreements. Your mortgage broker will explain this to you and may suggest that you get legal advice from a solicitor.

What insurance do I need for let to buy?

You will need landlords building insurance as a minimum. Your residential home insurance will not cover you for letting. Your mortgage broker will supply you with a quote for this.

Get advice and quote on let to buy mortgages here:

Now that you have filled in this form why not find out more about us?

What we do:

Search from an unlimited range of mortgage lenders for the best options available to you
Offer completely unbiased mortgage advice
Home buyer mortgages
Remortgages
Buy to let mortgages
Equity release – expert advice for later life borrowing
Life insurance

What we don’t do:

Pay your mortgage – if you do not keep up on your mortgage repayments, your home may be repossessed.
Charge you a fee – we are a fee free broker, providing expert advice without the fees!

« Previous article

Back to articles

Share on

      EXCELLENT  
   Based on 124 reviews 
    
 
 
 
   
 
 
       Posted on Google  
   
   ryan smith 
 
 
 
 Trustindex verifies that the original source of the review is Google. Very quickly responded within minuets and arranged a report for me very rapidly in multipal scenarios which other company's often refuse to do or charge extra per scenario would certainly use again thanks very much Paul for you efficient and friendly help
  
 
      Posted on Google  
   
   Yasmin Khanum 
 
 
 
 Trustindex verifies that the original source of the review is Google. Paul completed my mortgage capacity report for an FDR hearing at court,  in less than 24 hours. The whole process was very easy, I completed an online form that I was sent via a link. Then I sent my income documents via whattsapp, and the report in a FDR court compliant format was sent to me by email early the next day. I then forwarded this report to my Solicitors who filed it with the court  ready for my FDR hearing. The whole process was stress free and Paul was very friendly,  reassuring and an experienced professional. I felt I was in safe  hands right from the beginning of contacting Paul for help. I highly recommend Paul for mortgage reports.
  
 
      Posted on Google  
   
   Adam Baldwin 
 
 
 
 Trustindex verifies that the original source of the review is Google. I used Paul for my mortgage raising capacity for court, he was very quick and efficient in getting the forms for me. Thanks Paul, spot on service.
  
 
      Posted on Google  
   
   john mowatt 
 
 
 
 Trustindex verifies that the original source of the review is Google. Really good service very straightforward.
  
 
      Posted on Google  
   
   Lionel Hives 
 
 
 
 Trustindex verifies that the original source of the review is Google. Very calming and reassuring professionalism, Paul took very patient steps with my lack of knowledge and supported my request far beyond where I thought the fee covered and delivered a detailed response to my demanding requirements. Thoroughly recommended.
  
 
      Posted on Google  
   
   Elly 
 
 
 
 Trustindex verifies that the original source of the review is Google. The phone was answered when I rang, which is unusual in the modern world. Paul was very knowledgable, reassuring and friendly when I spoke to him even though I had a load of anxious questions. The report was done incredibly quickly and the form was straightforward to fill out even for me who struggles with forms. It also massively beat other companies on price. Thank you Paul. I highly recommend your service.
  
 
      Posted on Google  
   
   oscar pantano 
 
 
 
 Trustindex verifies that the original source of the review is Google. My experience was very positive. I needed my affordability report as a matter of urgency and I got it literally the following business day. The whole process was straight forward even tough my circumstances were complicated. I would recommend this business.
  
 
      Posted on Google  
   
   Stephanie 
 
 
 
 Trustindex verifies that the original source of the review is Google. Super quick response times, professional and sensitive customer service, excellent report quality. I cannot rate Paul and The Mortgage Plan highly enough.
  
 
      Posted on Google  
   
   Callum Palmer 
 
 
 
 Trustindex verifies that the original source of the review is Google. Fantastic service. Last minute I found out I needed a mortgage capacity report for court. I spoke with Paul, who reassured me he would get it done as soon as possible, he emailed it over within an hour or 2. Massively appreciated. Whole process was easy and did not take long.
  
 
  
  
 
     Verified by Trustindex  Trustindex verified badge is the Universal Symbol of Trust. Only the greatest companies can get the verified badge who has a review score above 4.5, based on customer reviews over the past 12 months. Read more