Keep Things Simple: Let to Buy Mortgage Brokers
Independent, whole-of-market and fees-free advice from a leading UK let to buy mortgage broker. Fill in the form below for a callback.
Ready to move into your next property but need to retain or let out your existing one? Do you want to move but your home isn’t selling? A let to buy mortgage could give you the best of both worlds.
Let to buy mortgages may seem like a confusing concept, but for many, they’re more than worth working out! This lesser-known mortgage option is the perfect solution to complex home buying situations. Whether you’re looking to transform your previous house into a profitable rental property, or have found your new home well before a buyer for your existing one, a let to buy mortgage could be the option for you.
The Fees Free Mortgages team are here to help you make your next move on the property ladder – even if you seem to be stuck between rungs. We’ll search every corner of the mortgage market to bring you the very best solutions and rates for your unique circumstances – helping you get things sorted sooner.
In simple terms, let to buy mortgages help buyers let out their existing home whilst purchasing a new one – keeping both in their possession.
Although their name sounds singular, LTBs are most often made up of two mortgages covering separate properties – a buy to let mortgage for the rental conversion, and a regular residential mortgage for the new house.
LTB mortgages are an excellent option for a number of complex buying scenarios, including:
In addition to converting their existing property into a rental, many ‘Let-to-Buy’-ers opt to release equity in or remortgage their existing property – contributing to the deposit fund for their new home.
Unsure of whether a let to buy mortgage is the right option for you? Fees Free Mortgages are here to help.
We know how confusing let to buy mortgage requirements, LTV ratios, and the sell vs let debate can be – and want to guide you through the process. Our leading let to buy mortgage brokers are always available to offer independent, fully-tailored mortgage advice in plain, understandable terms, and at no extra cost – helping you discover the optimum deal for your unique buying circumstances whilst avoiding common mistakes and expensive pitfalls. We’ll work to get you from A to B stress-free, hassle-free, and fees-free.
Unlike the industry ‘big boys’, Fees Free Mortgages is motivated by clients – not commission.
We’ll work hard to find and apply for the best mortgage deal for your individual circumstances; no strings attached. Best of all, our comprehensive services are completely fees free!
Most mortgage firms and brokers charge an arrangement fee upfront, or on completion of your application. We’re different. Our team work on an entirely fees-free basis, meaning you’ll never be charged for mortgage advice, or for arrangement - regardless of your circumstances.
We believe that the best brokers provide a personal touch - not outsourced calls and automated responses. With Fees Free Mortgages, you’ll be assigned an in-house personal broker and case manager, both of whom will be by your side throughout the process.
With thousands of mortgage options available on the market, it’s highly unlikely that you’ll get the best deal from your bank. On the other hand, whole of market brokers without lender ties are able to offer a wide range of deals, accompanied by unbiased mortgage advice.
Selecting a mortgage broker is a big step in one of the most significant financial decisions of your life - meaning it’s vital to ensure your final choice is trustworthy. Fees Free Mortgages are directly authorised by the FCA and are and fully accountable for the mortgage advice we give.
We promise to handle all the hard work, meaning you can sit back and relax until your mortgage completes, whilst your dedicated broker and case manager keep you in the loop. With us, you’ll always be fully informed on the stage and details of your application.
We believe everyone should have access to free, unbiased mortgage advice and brokerage. That’s why we’re proud to have developed flexible services benefitting clients from Cornwall to Carlisle and beyond. We’ll work to find your perfect mortgage, whether in-person in our flagship office, through one of our UK representatives, or over video call.
Ready to purchase a property but unsure of how much you’ll be able to afford? Our simple online mortgage calculators are here to give you a general idea of your loan to value ratio, how much you could borrow, and even what your monthly repayments may look like – all in just a few minutes. Whatever your situation, we’re here to help you crunch the numbers.
Discover our clients’ mortgage success stories.
I had so many questions and unknowns about buying my first home but none of them were too silly for Martin to answer. He helped me with finding the mortgage lender that suited me and did all the paperwork upfront, so to make everything run smoothly later on. He advised me with insurance and gave me me guidance and updates every step of the way. For me, Martin made buying my first home an exciting experience, not a stressful one and I would recommend him every time. Thank you.
First Time Buyer Mortgage
5.0
Martin Bright has been exceptional throughout a long and convoluted process. After three attempts at securing a house (and three mortgage searches), Martin was patient and professional, always happy to help and always finding a better deal than I thought possible. He explains things clearly and puts forward his thoughts and justifications in a very considered way. I have a 5yr fix at 0.9%. Which beggars belief really! Fantastic outcome, brilliant service and a thoroughly nice chap all round. Wouldn’t hesitate to recommend, and I already have done to a couple of friends looking to secure their own mortgages.
First Time Buyer Mortgage
5.0
5.0
I had so many questions and unknowns about buying my first home but none of them were too silly for Martin to answer. He helped me with finding the mortgage lender that suited me and did all the paperwork upfront, so to make everything run smoothly later on. He advised me with insurance and gave me me guidance and updates every step of the way. For me, Martin made buying my first home an exciting experience, not a stressful one and I would recommend him every time. Thank you.
First Time Buyer Mortgage
5.0
Martin Bright has been exceptional throughout a long and convoluted process. After three attempts at securing a house (and three mortgage searches), Martin was patient and professional, always happy to help and always finding a better deal than I thought possible. He explains things clearly and puts forward his thoughts and justifications in a very considered way. I have a 5yr fix at 0.9%. Which beggars belief really! Fantastic outcome, brilliant service and a thoroughly nice chap all round. Wouldn’t hesitate to recommend, and I already have done to a couple of friends looking to secure their own mortgages.
First Time Buyer Mortgage
5.0
Martin and his team were always quick to respond from mortgage application through to completion. He provided valuable advice and insight throughout, especially during the economic downturn and rapid rises with interest rates, and secured us a great deal with a lightning fast turnaround. Also, Adelle made obtaining Life and Financial Protection insurance super easy – allowing us time to look through the deals she prepared and was always willing to explain complex or unfamiliar terms to us. When we end up moving house in the future – I’m sure I’ll be giving Fees Free Mortgages a call.
Free Mortgage Advice
5.0
For anyone buying a new home, looking to re-mortgage or interested in setting up life cover – then Martin is absolutely your man. My wife and I have been using Martin for the past 4-years for our mortgages, personal and business life cover, and I would never go else where. Martin offers a very personal and professional service, he is extremely knowledgeable, honest and consistent, and is always looking for the best option for his client. I would highly recommend, great guy.
Self Employed Mortgage
Martin and his team were always quick to respond from mortgage application through to completion. He provided valuable advice and insight throughout, especially during the economic downturn and rapid rises with interest rates, and secured us a great deal with a lightning fast turnaround. Also, Adelle made obtaining Life and Financial Protection insurance super easy – allowing us time to look through the deals she prepared and was always willing to explain complex or unfamiliar terms to us. When we end up moving house in the future – I’m sure I’ll be giving Fees Free Mortgages a call.
Free Mortgage Advice
5.0
For anyone buying a new home, looking to re-mortgage or interested in setting up life cover – then Martin is absolutely your man. My wife and I have been using Martin for the past 4-years for our mortgages, personal and business life cover, and I would never go else where. Martin offers a very personal and professional service, he is extremely knowledgeable, honest and consistent, and is always looking for the best option for his client. I would highly recommend, great guy.
Self Employed Mortgage
5.0
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A let to buy, or ‘LTB’ mortgage allows buyers to rent out their existing home, and purchase a new one to live in. This two-part product involves converting an existing mortgage to a buy to let mortgage – allowing the buyer to let their existing property out, before taking out a standard residential mortgage on a new home they’re set to use as their primary residence. LTB mortgages are an excellent option for a number of complex buying scenarios and is a popular choice amongst couples moving in together but looking to retain both of their existing homes, those looking to move quickly but unable to sell their home immediately, and those looking to keep an owned property as a future investment.
In addition to converting their existing property into a rental, many ‘Let-to-Buy’-ers opt to release equity in or remortgage their existing property – contributing to the deposit fund for their new home.
If you’ve successfully applied for a let to buy mortgage, you’ll be able to live in the property you purchased as your new primary residence using a regular mortgage without issue. You won’t, however, be able to stay in your existing property due to its conversion to a buy to let mortgage.
Under the vast majority of buy to let mortgage terms, buyers cannot live in a property that they have financed with this mortgage type. In fact, doing so would be considered mortgage fraud in most cases, and may result in the lenders’ request for the immediate repayment of the full loan amount.
If you’re considering a let to buy mortgage, our experts highly recommend seeking advice from a mortgage broker with strong experience and a good reputation. Here at Fees Free Mortgages, we’re proud to offer no-obligation, fees-free mortgage advice sessions, delivered by unbiased brokers specialising in let to buy mortgages. Whether you’re at the very start of your mortgage journey or need some assistance along the way, we’ll help you find and secure the best possible mortgage for your circumstances.
As let-to-buy mortgages technically consist of two different mortgages – including buy-to-let – their applicants tend to face slightly stricter criteria than they would taking out a regular mortgage. The exact criteria you’ll face as a let-to-buy mortgage applicant will vary according to your circumstances and chosen lenders, but you’ll generally have to meet requirements for:
You may also have to provide evidence of your onward purchase.
If you’re unsure as to whether you’re a suitable candidate for a let to buy mortgage, get in touch with Fees Free Mortgages. Our independent, unbiased, and free mortgage advice service will help ensure you’re on the right track to finding and securing the right mortgage for your situation.
Both buy to let and let to buy mortgages are financial products targeting those looking to let out their properties – but ultimately serve different purposes. In simple terms, a buy to let mortgage allows buyers to purchase a property with the sole intent of letting it out for income. It’s most often used by landlords – whether one-off, portfolio, or even accidental. On the other hand, let-to-buy mortgages allow buyers to purchase a new property as their intended primary residence, whilst retaining and letting out their existing/current home.
Whilst a buy-to-let mortgage is a single product, let to buy mortgages are slightly more complicated. They consist of two mortgages, often taken out with the same provider simultaneously. One is a regular mortgage, used to purchase the new primary residence, whilst the other is a standard buy-to-let, used by the buyers to convert their existing property into rental accommodation whilst retaining ownership.
The overall cost of your let to buy mortgage will depend on your extract circumstances and provider. With this being said, let to buy mortgages do tend to be slightly more expensive than a standard mortgage – in addition to requiring a significant deposit (often between 20 and 25% of the property value). Let to buy buyers should also keep in mind the extra costs associated with this product – particularly the second home stamp duty charges applicable in most cases.
Though these upfront costs can seem intimidating, the benefits of let to buy mortgages outweigh the risks and initial payments for many – with the potential for rental income, and increasing equity over two properties proving highly useful over time.
Any mortgage product involving a buy-to-let model holds some degree of risk. In the case of let to buy mortgages, these involve vacancy rates/profitability and rental management. It’s imperative to ensure that your recently converted rental property will be inhabited and profitable – bridging in enough rent to cover mortgage payments and management. Whilst a mortgage broker will be able to assist greatly in affordability calculations and stress tests, it’s often advisable to visit a letting agent for insight as to property management costs.
With this being said, let to buy mortgages have the potential to be highly profitable in the right situation. If the rental property is correctly maintained and tenants are found and retained, the buyer will benefit from added rental income, alongside gaining equity in two properties, which once paid off, could become valuable assets for resale.
In simple terms, yes. Buyers must pay stamp duty when purchasing a property under a let to buy mortgage. As let to buy buyers are retaining an original property for rental purposes whilst purchasing a new one to live in, they’re also liable to pay additional stamp duty from between 3 and 15%.
If you sell your ‘second’ property within three years of purchase, you’ll be able to claim back any additional stamp duty paid so long as you make a claim within 12 months of the sale date.
If you need advice regarding let to buy mortgages, get in touch with Fees Free Mortgages. Our independent, unbiased, and free mortgage advice service will help ensure you’re on the right track to finding and securing the right mortgage for your situation.
Deposit requirements for let-to-buy mortgages are often in line with those for buy-to-let mortgages – typically sitting between 20 and 40%. Of course, exact figures vary according to your individual circumstances and chosen lender. For the ‘new’ or primary property, some lenders are known to cap LTV rates at approximately 80%.
To discover how much you may need to save for a let to buy mortgage deposit, get in touch with the Fees Free Mortgages team. We’ll work with you to discover your unique circumstances and buying needs – determining your approximate deposit costs, and ideal mortgage rates.
Although you don’t necessarily need a mortgage broker to complete your let to buy mortgage, it’s highly recommended that you seek their advice in order to get a whole-of-market perspective and expert insight. In addition to helping guide you in the right direction, a good mortgage broker will be able to assist you in securing your let to buy a mortgage from start to finish – helping you through the complex process of converting your original mortgage to a buy-to-let, and applying for a regular mortgage for your new home.
Often, the help of an expert is vital to ensuring both mortgages complete simultaneously. If you’re considering a let to buy mortgage, but don’t know where to start or need advice, contact the Fees Free Mortgages team to arrange a completely unbiased, no-obligation, fee-free consultation.
Let-to-buy is a relatively niche mortgage type best suited to those looking to move home, but unable or unwilling to sell their existing home. Clients seeking this product often include:
If you’re considering a let to buy mortgage, our experts highly recommend seeking advice from a mortgage broker with strong experience and a good reputation. Here at Fees Free Mortgages, we’re proud to offer no-obligation, fees-free mortgage advice sessions, delivered by unbiased brokers specialising in let to buy mortgages. Whether you’re at the very start of your mortgage journey or need some assistance along the way, we’ll help you find and secure the best possible mortgage for your circumstances.
