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Let to Buy mortgages are a specialist type of mortgage arrangement designed for homeowners who want to move into a new property while renting out their existing home https://smartcitymortgages.co.uk/blog/let-to-buy-mortgages-how-they-work-pros-cons-eligibility/ . Instead of selling the current property, the owner converts it into a rental and uses the rental income alongside their circumstances to help finance a new residential purchase. What is a Let to Buy mortgage? A Let to Buy mortgage is a structure where an existing residential property is switched to a buy-to-let arrangement, while a new residential mortgage is taken out on another home. In practice, the original mortgage is often replaced or refinanced on a rental basis, allowing the property to be legally let to tenants while the owner purchases a new main residence. How does Let to Buy work? The process typically involves two linked transactions. First, the homeowner remortgages their current property onto a buy-to-let product, based on expected rental income rather than personal income alone. Second, they apply for a residential mortgage for the new home they intend to live in. Lenders assess both applications carefully, considering affordability, rental yield, and overall debt exposure. Coordination between both mortgages is important to ensure timing and approval align. Who is a Let to Buy mortgage suitable for? This type of arrangement is usually suitable for individuals who want to move home but prefer not to sell their existing property, possibly due to market conditions or long-term investment plans. It may also suit those relocating temporarily or looking to build a property portfolio gradually without immediately exiting the original home ownership. Let to Buy vs Buy to Let: what’s the difference? Let to Buy vs Buy to Let: what’s the difference? is a common comparison point. In Let to Buy, the owner already lives in the property and converts it into a rental while purchasing a new home to live in. In Buy to Let, the property is purchased specifically as an investment from the start, without the owner ever occupying it as their main residence.