| Mortgages involved | Usually two: buy-to-let and residential |
|---|---|
| Typical buy-to-let LTV | Up to 75%, sometimes 80% |
| Rental test | Rent usually covers interest by 125%–145% |
| Stamp duty | Surcharge usually applies on the new home |
| Equity release | Possible from the home you are letting |
| FCA regulation | Residential part regulated; consumer BTL rules may apply |
Who is this for?
- Homeowners moving who want to keep their current home as an investment
- People who cannot sell, or prefer not to sell, in the current market
- Couples moving in together who each own a property
- Professionals relocating for work who may return later
How does let-to-buy work?
You remortgage your current home onto a buy-to-let mortgage, or get consent to let from your existing lender. You then buy your new home with a residential mortgage. Often you release equity from the first property to fund the deposit on the second.
Both applications need to complete at about the same time. Lenders want to see that the buy-to-let is in place before, or alongside, the new purchase. That is why coordinating the two cases matters.
How do lenders assess a let-to-buy?
The two mortgages are assessed in different ways:
- The buy-to-let: lenders look mainly at the expected rent. It typically needs to cover the interest by 125%–145% at a stressed rate. A letting agent's rental estimate is often required.
- The residential mortgage: lenders assess your income and outgoings. Some count the new buy-to-let mortgage as a commitment. Others ignore it if the rent covers it comfortably.
Releasing too much equity from your current home can reduce the rent cover. Releasing too little can leave you short of a deposit. We model both sides before you apply. Our buy-to-let calculator gives an early view.
What about consent to let?
Consent to let is permission from your current lender to rent out the property on your existing mortgage. It can be quick and avoids early repayment charges. Lenders often add a fee or raise the interest rate.
It is usually a short-term option. If you plan to let long-term, or need to raise money for a deposit, a full buy-to-let remortgage is often more suitable. We can compare both routes.
What costs and taxes apply?
Because you will own two homes, your new purchase usually counts as an additional property for stamp duty. In England and Northern Ireland that adds a 5% surcharge to each band. You may be able to reclaim it if you sell your previous main home within three years. Our stamp duty guide explains the rules.
Rental income is taxable, and individual landlords only get a basic-rate credit for mortgage interest. When you later sell the let property, capital gains tax may be due on part of the gain. Speak to a tax adviser. OMB does not give tax advice.
You also become a landlord, with legal duties. In England, the Renters' Rights Act began coming into force from 1 May 2026. It ends no-fault evictions, so letting out your home can be harder to reverse quickly.
What are the risks of let-to-buy?
You will carry two mortgages. If the let property is empty, or a tenant stops paying, you still need to cover both payments. Interest-only buy-to-let leaves the full loan to repay later, so you need a clear repayment plan.
House prices can fall as well as rise, and the costs of being a landlord are rising. Releasing equity increases the debt secured on your current home. Make sure the numbers still work if rates rise or the rent drops.
Is let-to-buy regulated?
Your new residential mortgage is regulated by the Financial Conduct Authority. Letting your former home may count as consumer buy-to-let, because you did not buy it as an investment. Consumer buy-to-let has its own protections. A buy-to-let taken purely for investment is usually unregulated.
OMB is an independent, whole-of-market broker based in Mayfair. We arrange let-to-buy for clients across the UK and can manage both mortgages together. See also our residential purchase and buy-to-let pages.
Run the numbersMaximum loan from rent using lender ICR stress tests (125% / 145%).
Buy-to-let calculatorHow we arrange it
- Free 15-minute call to review both properties
- Rental valuation and equity release plan
- Compare buy-to-let and residential lenders together
- Coordinate both applications and valuations
- Synchronised completions on letting and purchase
Example cases
Illustrative examples based on the type of case we arrange. Not specific clients; every case is different.
£390,000 let-to-buy at 65% LTV releasing a deposit to move from Clapham to Surrey
£168,000 let-to-buy at 70% LTV for a couple relocating from Birmingham for work
£262,500 let-to-buy at 70% LTV in Brighton after weighing up consent to let
From the blogLet-to-buy in 2026: seven checks before you rent out your home
Read the articleFrequently asked questions
What is a let-to-buy mortgage?
It is not a single product. It describes using a buy-to-let mortgage on your current home, often to release equity, and a residential mortgage on the home you are buying. The two are usually arranged together so they complete at the same time.
Can I release equity from my home to buy another?
Yes, often. You remortgage your current home onto a buy-to-let and use the extra borrowing as a deposit for your next home. The amount is limited by the lender's loan-to-value cap and by how far the rent covers the new interest.
Do I pay the stamp duty surcharge on let-to-buy?
Usually yes, because you will own two homes when you buy. In England and Northern Ireland that means a 5% surcharge on each band. You can normally reclaim it if you sell your previous main home within three years. Timing rules apply, so check before you buy.
Is consent to let better than a buy-to-let remortgage?
Consent to let is quicker and avoids early repayment charges, but lenders often add a fee or increase the rate. It usually suits short-term letting. For long-term letting or raising a deposit, a buy-to-let remortgage is often more suitable. Your adviser can compare the two.
Will the buy-to-let mortgage affect what I can borrow on my new home?
It can. Some residential lenders include the buy-to-let payment as a commitment. Others ignore it if the rent covers it by a healthy margin. Choosing the right lender for each part can make a real difference to your borrowing. We assess both together before you apply.
Do I need a tenant lined up before I apply?
Not usually. Lenders typically rely on a rental estimate from a letting agent or the valuer. You will normally need to let the property on an assured shorthold or the appropriate tenancy after completion. Lenders will usually want the property let within a reasonable period after completion, and some set conditions on the type of tenancy.
Can I let to a family member?
Some lenders allow it, but it is usually treated as consumer buy-to-let with regulated protections. Many mainstream buy-to-let lenders do not accept family lets. Tell your broker at the outset so the right lender is chosen. This route can still work with the right lender, but the process and protections differ.
What happens if my letting property is empty?
You still need to pay both mortgages. Lenders expect you to have a buffer for void periods and repairs. Before going ahead, check you could cover both payments for several months if needed. Landlord insurance with rent guarantee cover may help, subject to the policy's terms and underwriting. A cash reserve is still sensible.
Can I move back into my let property later?
You can, but you will need to switch back to a residential mortgage and end the tenancy lawfully. In England, landlords now need a valid ground, such as wanting to move back in, with notice periods set by the Renters' Rights Act.
Important: Most buy-to-let mortgages are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments, and a receiver of rent may be appointed.