Let to Buy Mortgage | Fee-Free Advice

What is Let-to-Buy Mortgage?

A let-to-buy mortgage allows you to rent out your current home while purchasing a new one to live in. It’s the ideal mortgage solution if you’re looking to move without selling, or are looking to position yourself as a property investor. At Boon Brokers, our experts provide fee-free mortgage advice with whole-of-market access, helping you explore all of your options to secure the best deal that matches your property goals.

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Submit an enquiry and await contact from one of our expert fee-free brokers.

Expert Advice

Your broker will listen to your let to buy requirements and provide a proposal.

Mortgage Offer

Your broker will submit your application and await your mortgage offer.

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How Much Deposit Do I Need for a Let-to-Buy Mortgage?

Most lenders cap the loan-to-value (LTV) at 75%, meaning you’ll need at least 25% equity in your current property. This equity can often be used as your deposit for the new property. When buying your next home, aim for a minimum 10% deposit. Some lenders may consider a higher LTV if you’re struggling to raise the full amount.

How Much Income Do I Need for a Let-to-Buy Mortgage?

Lenders usually require a minimum income of £15,000 to £25,000, depending on their criteria. They’ll also assess the rental income on your current property, which typically needs to cover 125% to 145% of the mortgage repayments.

What Is the Difference Between Let-to-Buy and Buy-to-Let?

A let-to-buy mortgage is designed for homeowners who want to buy a new property to live in while renting out their existing one. A buy-to-let mortgage, on the other hand, is for those purchasing a property specifically as an investment or to rent out from the start.

Can I Get a Let-to-Buy Mortgage with Bad Credit?

It’s possible, but it depends on the severity of your credit history. Some lenders are more flexible with minor or older credit issues, while others may decline recent or severe cases. As a whole-of-market mortgage broker, Boon Brokers can research and identify the most suitable lenders for your situation, helping you find the best available deal despite past credit challenges.

Why Might Someone Take Out a Let-to-Buy Mortgage?

Many people choose let-to-buy to avoid the delays of selling their current home, generate rental income, or retain their property as a long-term investment. It’s especially useful in slower property markets, allowing you to move quickly while keeping your existing property working for you.

Is a Let-to-Buy Mortgage a Good Idea?

Let-to-buy can be an excellent financial option and opportunity if you’re looking to move home and keep your existing property. It provides rental income and potential capital growth while freeing up equity to fund your new purchase. However, keep in mind that Stamp Duty Land Tax applies to your new property, as it will technically be considered a second home.