What is let to buy – and how it could help build your wealth

We are all very familiar with buy to let, a type of mortgage designed to let us buy an investment property, for letting out to a tenant.

It plays a major part in a many people’s prosperity plans. But what about let to buy?

Let to buy can be an option for those who want to purchase a new home whilst keeping hold of their current property and letting it out. As someone looking to buy a new property, it can allow you to release some equity from your current home and put it down as a deposit on your new one.

As experts in all types of mortgage products, at Continuum we can not only explain what it is and what it could do for you, should this be something that fits with your plans.

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Our team include experts in mortgages – and a call to us could help you find the mortgage that is right for your needs.

Another way to climb the property ladder

Climbing the property ladder one rung – or home – at a time is the way that most of us work towards the long-term home that we really want. As a result, many of us have looked back down, and seen the properties previously purchased may have increased in value and thought regretfully that we should have kept them.

Having the home you want, and additional homes in an investment portfolio may seem to be an impossible combination.

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Let to buy – and a call to Continuum – could make it possible.

Let to buy could help you move up the housing ladder and keep your current home as a long-term investment.

A mortgage on a home you own

Buy to let allows you to acquire a property to let out. Let to buy can also help you become a landlord, by letting out the home you live in.

Naturally, if you let out your home, you will need somewhere else to live. With a let to buy mortgage, you may be able to buy a new home while keeping hold of your current property. It can allow you to release some of the equity you have built up in your current home and use it as a deposit on your new one.

So, you will have two mortgages. A standard residential mortgage on your new home, with the deposit released from the equity of your old your old home – and a let to buy mortgage covering your old home, which could be covered by the rental income you receive from it.  However, if the mortgage payments are not covered by the rental payments then you would be liable for payments for both mortgages.

This is a little more complicated than arranging a standard mortgage and getting an independent mortgage expert is vital.

We are independent

At Continuum we are independent – which means we can review the market for all types of mortgage. Simply call us to find out more.

Who can use a let to buy mortgage?

There are several situations where a let to buy mortgage can be particularly useful.

  • It can be ideal for younger couples making the move from a flat to a family house. Retaining the flat as an investment property can produce a useful income, and it could be an appreciating asset – and it avoids the need to find a buyer before making the move. This can be especially useful if it is an imminent addition to the family prompting the move.
  • It may also be useful for couples who move in together later in life, when they both already have their own properties. This can let them live in one of the properties and rent the other out.
  • It could also provide a solution for those who are struggling to sell their current home. This can be a problem in the current sluggish market, or if the property has suffered a significant drop in value. A short term let should provide a stopgap, covering the extra costs until the market improves and a buyer can be found.


It may be difficult to sell or realise the investment, or obtain information about its value, or the extent of the risks to which it is exposed.

As property is a specialist sector it can be volatile in adverse market conditions, there could be delays in realising the investment.

How easy is it to arrange a let to buy mortgage?

Going direct to most high street lenders is unlikely to provide a quick answer, if they are able to help at all. You need an expert to help you get the mortgage you really need.

We can advise you about the pitfalls of becoming a landlord: the extra stamp duty costs, and potential capital gains tax liabilities. We can discuss the level of finance you can expect to raise, and about the levels of equity you require to ensure that a let to buy solution is practicable for you.

Then we can search the market to find the best residential mortgage for your new home and for the let to buy mortgage on your old one.

To find out more about let to buy, buy to let – and any other type of mortgage, it makes sense to talk to an independent expert. At Continuum, we have an independent expert team waiting to talk to you. Why not call us now?

The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.

Your home or property may be repossessed if you do not keep up repayments on your mortgage

The Financial Conduct Authority does not regulate some aspects of Buy to let mortgages. We suggest that you seek legal advice and advice on tax issues before purchasing a property to let.

The value of property investments and income from them can go down as well as up and investors may not get back the amount originally invested.

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