Residential & specialist
Keep your current home, let it out and move forward
Let-to-buy allows you to retain your current home as a rental property while purchasing a new main residence. It usually involves arranging a buy-to-let mortgage, or appropriate consent to let, on the existing property alongside a residential mortgage on the new home. The two applications must be assessed and timed together.
We will assess your complete circumstances, explain the available routes and recommend a mortgage that supports your wider plans. Your initial conversation is without obligation.
How a let-to-buy transaction is structured
Your existing property is valued and its expected rent is assessed. A buy-to-let mortgage may replace the current residential mortgage and can sometimes release equity towards the onward purchase. Separately, the new residential mortgage is based on your income, commitments, deposit and the treatment of the retained property. Both transactions normally complete in a coordinated way.
Who this may help
Let-to-buy may suit homeowners who want to move without selling immediately, retain a property with good rental prospects, relocate temporarily, move in with a partner, or build a property portfolio. It is not automatically the right alternative to selling: the rental, equity, tax position and responsibilities of becoming a landlord all matter.
What needs to be considered
- Expected monthly rent and the lender’s rental stress calculation
- Available equity and any early repayment charge on the existing mortgage
- Affordability for the new residential mortgage
- Whether the retained property is self-financing after costs and tax
- Deposit and additional-property transaction tax
- Landlord licensing, insurance, safety and tenancy obligations
- Void periods, maintenance, agent fees and changes in mortgage rates
- Coordinating valuation, legal work and completion across two applications
How ERG Finance approaches it
We model both sides of the transaction before recommending a route. This includes the likely buy-to-let loan, funds released, residential affordability and monthly cash flow. We also flag where the client should obtain legal, tax or lettings advice before committing to the structure.
Let-to-buy is different from consent to let
Consent to let is temporary permission from an existing residential lender to rent the property. A let-to-buy remortgage places the retained home on an appropriate buy-to-let basis, often for a longer-term strategy. Consent is not automatic and its terms may not support equity release or permanent letting.
Our role
- understand the purpose of the mortgage and the outcome you need
- check affordability, lender criteria and property requirements before recommending a route
- compare the rate, fees, flexibility, early repayment charges and overall cost
- prepare the application and evidence so the lender sees a complete and accurate case
- manage the mortgage process through valuation, offer and completion
Frequently Asked Questions
-
The amount normally depends on its value, expected rent, loan-to-value limits and the lender’s rental calculation. Your personal income may also be relevant with some lenders.
-
Potentially. If there is sufficient equity and the rental assessment supports the required loan, a let-to-buy remortgage may release funds for the onward purchase.
-
Not automatically. Lenders differ in how they treat the retained property. Evidence of the new mortgage, expected rent and any rental shortfall may be required.
-
Keeping the original property normally means you own more than one residential property at completion, so additional-property tax rules may apply. The rules differ across the UK and personal circumstances matter. Obtain advice from your solicitor or tax adviser.
-
This can change the regulatory and lender treatment. Standard buy-to-let products may not be suitable where a close family member will occupy the property.
-
No. Options exist for first-time landlords, but lender criteria, rental coverage and property rules vary.
Speak to an advisor
Book a consultation
Check out our availability and book the date and time that works for you.
Select a Date and Time
Time zone: United Kingdom (Europe/London)
Your consultation
A 30-minute telephone call with one of our advisers. Tell us a little about your situation and we’ll match you with the right person.
Select a date to see availability
Booking Form
Your consultation is booked.
A confirmation will follow by email. Need to make a change? Call +44(0) 1743 668 202.
This booking was taken in test mode and has not reached our diary. Please call 01743 668 202 to confirm your appointment.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Buy-to-let mortgages and commercial lending are not usually regulated by the Financial Conduct Authority. Tax treatment depends on individual circumstances and may change.