Buy to Let
Switch to a Let to Buy mortgage
Want to sell up but struggling to find a buyer? Or maybe you want to purchase a new home but keep your current one too? A Let to Buy mortgage could be the answer. Create a free Tembo plan to see what options are available to you.
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How does it work?
A Let to Buy mortgage is when you turn your current home into a rental property and let it out to tenants, while you buy a new home to live in. Essentially, you'll have two mortgages - one for the property you intend to rent out, the other for a new property you want to buy and live in.
You might need a Let to Buy mortgage if you want to buy a new home, move location or upsize, but are struggling to find a buyer for your current property or want to keep hold of it. This can mean you become an "accidental landlord" - i.e you weren't planning on being a landlord originally, but become one through your circumstances changing.
The lending criteria for Let to Buy mortgages differs from lender to lender, and you will need to know how much rent you'll get from the property you intend to rent out. An experienced mortgage broker like Tembo can help you navigate these requirements and work out if a Let to Buy mortgage is right for you.
Things to consider
All mortgages have risks and benefits. Here are some key things you should know before applying for a Let to Buy mortgage.
What are the benefits?
You'll benefit from property price growth
With two properties under your belt, you'll benefit from any increase in value on both your letted property and the one you live in.
Allow you to move home, even in a volatile market
If you wanted to sell your first home but are struggling to find a buyer, a Let to Buy mortgage can be a short-term solution to allow you to buy your next home without waiting for the market to improve.
Get a regular source of income
As a landlord, you will earn a rental income from your property that you let out. This will normally cover the monthly repayments on your letted property, but could even be a source of additional income to supplement your earnings.
Risks and considerations
You'll need to cover both mortgages
Normally with a Let to Buy mortgage, your rental income is used to cover the mortgage repayments for your old home. But to be approved, you'll also need to have enough income to cover the repayments for your new mortgage too.
You'll need to pay extra Stamp Duty
When you buy a second property, you have to pay the Stamp Duty surcharge. This means that you'll pay 3% on top of the normal Stamp Duty band the property falls into. Use our Stamp Duty Calculator to see what you will need to pay.
You might not get the best rates
Let to Buy mortgage rates are often not as low as those for a standard residential mortgages. This is because taking on a Let to Buy mortgage is considered a greater risk. This might mean your monthly repayments are higher than you were expecting.
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The application process
Get a Let to Buy mortgage in 4 simple steps
Make a Tembo plan
In under 10-minutes, we’ll check your eligibility for a Let to Buy mortgage and find the best options for you from thousands of mortgage products. Plus, you’ll get a personalised recommendation including interest rates and repayments.
Talk to an expert
Book a call with our mortgage experts to complete the qualification process. We’ll cover any questions you might have about Let to Buy mortgages and any other buying schemes you might be interested in.
Apply for a mortgage
Once you’ve found a property you want to buy, your dedicated advisor will undertake full affordability and submit a Decision in Principle with your chosen lender. Once accepted, we’ll submit a full mortgage application for you.
Make home happen
During the conveyancing process, we’ll liaise with the developer or seller and your solicitors to ensure a smooth purchase. We’ll also provide a free insurance protection review, so you’re covered if the unexpected happens.
Got questions? We've got answers
See all FAQsFrequently asked questions
Other Buy to Let mortgages
Explore our other Buy to Let mortgages and buying schemes
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Take out a mortgage on a property to rent out to family members like your children, parents or grandparents.
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Standard mortgage
Buy your new home to live in with a standard repayment mortgage. You'll put down a downpayment, and borrow the remainder from your new mortgage lender.
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Want to know more about how mortgages work? Read our guides to brush up on your know-how
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