How does let-to-buy actually work?
You arrange two mortgages that complete at the same time. The first converts your current home to a buy-to-let mortgage, sometimes releasing equity for your next deposit. The second is a residential mortgage on the property you are moving into.
Some people instead ask their current lender for "consent to let". This is a short-term permission, not a long-term solution, and usually carries a higher rate or fee.
Let-to-buy is common among people relocating for work, upsizing for a growing family, or moving in with a partner who already owns. It lets you keep a property you know well, but it also makes you a landlord with legal responsibilities from day one.
Check 1: is there enough equity?
Most buy-to-let lenders cap borrowing at around 75% of the property's value. If you release equity, both mortgages must still work. Your new residential lender will usually want to know where the deposit came from, and released equity is widely accepted.
Check 2: does the rent cover the mortgage?
Buy-to-let lenders test rent against a stressed interest rate. Many want rent of 125% to 145% of the stressed payment. Get a written rental valuation from a local letting agent early. If the rent falls short, you may need to borrow less. Our buy-to-let calculator gives a quick estimate.
Check 3: can you afford the new home as well?
Your residential lender will assess your income and include the buy-to-let mortgage in its calculations. Many will discount the rental surplus, or count a shortfall against you. See how much can I borrow for the main factors.
Check 4: have you budgeted for stamp duty?
Because you will own two homes, your new purchase in England usually attracts the 5% higher-rates surcharge on top of standard stamp duty. The refund only applies if you sell your previous main residence within three years. For most let-to-buy movers, it is a real cost. Use our stamp duty calculator.
Check 5: do you understand the tax position?
- Rental profit is taxable. From April 2027, individuals pay separate property rates of 22%, 42% or 47%.
- Mortgage interest only gets a tax credit, not a full deduction.
- Interest on equity released to buy your new home may not be deductible against the rent.
- When you sell, private residence relief usually covers the years you lived there plus the final nine months. The rest may face capital gains tax.
Speak to an accountant before you commit.
Check 6: are you ready to be a landlord?
Since 1 May 2026, tenancies in England are periodic and Section 21 has gone. If you might want to move back, you can use a possession ground for owners, but only with proper notice and not in the first year. You will also need gas and electrical safety certificates, deposit protection, a valid EPC and, by 1 October 2030, EPC C or an exemption.
Do I need to tell my insurer and lender?
Yes. Your home insurance will not usually cover a let property, so you need landlord insurance from the day the tenancy starts. Letting without your lender's permission could breach your mortgage terms. If you are a leaseholder, check the lease too: some prohibit subletting or need the freeholder's consent.
You may also need a licence if your council runs a selective licensing scheme. Ask the local authority before you market the property.
What if the numbers do not work?
If rent will not support the borrowing you need, there are options. You could release less equity, put more savings into your new purchase, or extend the mortgage term on either property. Some movers delay the purchase until their current fixed rate ends. Others sell after all. A broker can model each option against current lender criteria.
Check 7: early repayment charges and timing
Switching your current mortgage before its deal ends may trigger early repayment charges. Sometimes it is cheaper to wait or use consent to let for a short period. Both mortgages also need to complete together, which needs coordination between lenders, solicitors and agents.
Let-to-buy on your former home may be treated as consumer buy-to-let, with some regulatory protection. Your new residential mortgage is regulated. Your home may be repossessed if you do not keep up repayments on a mortgage secured on it.
Let-to-buy mortgagesLet your current home and buy your next one, with two mortgages arranged together.
Explore let-to-buy mortgagesFrequently asked questions
What is the difference between let-to-buy and consent to let?
Let-to-buy replaces your residential mortgage with a buy-to-let mortgage, usually alongside buying a new home. Consent to let is temporary permission from your existing lender to rent out the property on your current mortgage. Consent to let is often limited to a fixed period and may add a fee or higher rate.
Do I pay the stamp duty surcharge on let-to-buy?
Usually, yes. In England, if you own another residential property when you buy your new home, the 5% surcharge normally applies. It can be refunded only if you sell your previous main residence within three years, which is not the plan in a let-to-buy.
Can I release equity for my deposit with let-to-buy?
Yes. Many buy-to-let lenders let you raise money for a deposit on your next home, provided the rent covers the new loan under their stress test and the loan stays within their LTV limit, typically 75%. Your new residential lender will want to see the released funds as part of your deposit evidence.
Is let-to-buy regulated?
Your new residential mortgage is regulated by the FCA. A buy-to-let mortgage on a home you used to live in is often classed as consumer buy-to-let, which has its own protections. A broker will confirm which applies. Your home may be repossessed if you do not keep up repayments.
Can I move back into my let-to-buy property later?
Under the Renters' Rights Act in England, landlords can seek possession to move back in, but not in the first 12 months of a tenancy and only with the required notice. You would also need to tell your lender and likely change your mortgage.
How long does let-to-buy take?
Because two mortgages and often a purchase chain are involved, it typically takes as long as a normal purchase, sometimes longer. Starting with rental valuations and a mortgage in principle helps keep things moving. Delays often come from rental valuations, consent to let or chain issues, so build in time for both lenders to complete together.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.