Let to Buy Mortgages 2026: How Keeping Your Home to Let Works

Let to buy is when you keep your current home and rent it out, then buy a new home to live in. You usually need consent to let or a buy to let remortgage on the old home, plus a new residential mortgage on the next one.

It suits people who want to keep a property they know, are relocating for work or cannot get the price they want right now. It is also more involved than a straight move. Two lenders need to agree to the plan, the Stamp Duty is higher and you take on a landlord’s legal and tax duties.

This guide covers each step and the costs. For the wider moving process, see our home mover mortgage guide. If you want the full picture on letting, see our buy to let mortgage guide.

How does a let to buy mortgage work?

There is no single let to buy product. It is two mortgages arranged together. Your current home moves onto a buy to let mortgage, or stays on your existing deal with your lender’s consent to let. At the same time you take a new residential mortgage on the home you are buying. Both lenders need to see the full plan, and they usually complete together.

Consent to let or a buy to let remortgage?

	Consent to let	Buy to let remortgage
What it is	Your current lender agrees you can let the home on your existing mortgage	You switch the old home to a buy to let mortgage, with your lender or a new one
Best for	Shorter or uncertain lets	Keeping the property as a long term rental
Typical terms	Often granted for a set period, sometimes with a fee or a higher rate	Assessed mainly on the rent, usually needs at least 25% equity
Raising money	Not usually possible	You may release equity towards the new deposit, if the rent supports it
Watch out for	Not every lender offers it, and it is temporary	Early repayment charges on your current deal

Never let your home without one of these in place. It can breach your mortgage terms and your insurance.

How do lenders assess let to buy?

On the old home, a buy to let lender looks at the expected rent compared with the interest at a stressed rate. Many want the rent to cover 125% to 145% of the interest, depending on your tax band and the product. A letting agent’s rental valuation is normally needed. If the rent falls short, some lenders take your personal income into account, known as top slicing.

On the new home, the residential lender assesses your income in the usual way. It will also look at the buy to let. Some lenders ignore it if the rent covers the payment comfortably. Others count any shortfall, or the whole payment, as a commitment. That choice can change how much you can borrow by a large amount, which is why the order and choice of lenders matters.

Do you pay the Stamp Duty surcharge on let to buy?

Usually, yes. In England and Northern Ireland, the higher rates add 5% to every band if you own more than one home at the end of the day you complete and have not replaced your main home. Keeping your old home to let means you have not replaced it. The rules, including the three year refund window and the 12 month claim deadline, are on GOV.UK’s guide to buying an additional residential property. Our Stamp Duty guide has more worked examples.

Which situations do lenders see most?

These are illustrative situations, not Option Finance client outcomes.

What changed for landlords under the Renters’ Rights Act?

The main changes in England came into force on 1 May 2026. Section 21 no fault evictions have ended and existing assured shorthold tenancies have become rolling assured periodic tenancies. Rent can only go up once a year using the formal notice process. GOV.UK has a Renters’ Rights Act overview for landlords.

For let to buy, this matters most if you think you might move back. You will need a valid possession ground and the right notice, so getting your home back is not as quick as it once was. You also still need the basics: deposit protection, gas and electrical safety checks, an EPC and landlord insurance.

How is let to buy taxed?

• Income tax on rent. You declare rental profit through Self Assessment. For individual landlords, mortgage interest is not deducted from rent. You get a basic rate tax credit instead. From April 2027 property income will have its own rates of 22%, 42% and 47%, with finance cost relief at 22%. Our buy to let tax guide explains more.
• Making Tax Digital. If your combined property and self-employed income is over £50,000, you need to keep digital records and send quarterly updates from April 2026.
• Capital Gains Tax when you sell. Private Residence Relief covers the years it was your home, and you always get relief for the last 9 months before you sell. See GOV.UK’s guidance on tax when you sell your home. The let years can be taxed at 18% or 24%, after the £3,000 annual exempt amount. Gains on UK homes must be reported and paid within 60 days of completion. Letting Relief only applies if you lived in the home at the same time as your tenants. See our Capital Gains Tax guide.

What should you have ready?

• A rental valuation from a local letting agent
• Your current mortgage statement and early repayment charge details
• Payslips or accounts for the new residential mortgage
• Your deposit and Stamp Duty funds, including the surcharge
• A plan for empty months, repairs and letting agent fees

Frequently asked questions

Speak to Option Finance about let to buy

Tell us about your current home, the rent you expect and the home you want to buy. We will tell you straight whether let to buy works, which route suits the old home and how much you could borrow on the new one.

Book a free initial consultation using the enquiry form below. See our moving home mortgage advice, our guide on whether you can have more than one mortgage and our buy to let remortgage guide.