Let to Buy mortgages are a structured financial arrangement used by homeowners who wish to retain their existing property while purchasing a new residential home. This type of lending involves converting the current residence into a rental property and simultaneously securing a new residential mortgage for onward purchase https://smartcitymortgages.co.uk/blog/let-to-buy-mortgages-how-they-work-pros-cons-eligibility/ . The structure is subject to lender assessment, regulatory standards, and affordability checks. What is a Let to Buy mortgage? It is a dual-transaction arrangement combining a remortgage of the current property onto a buy-to-let basis and the acquisition of a new home under a standard residential mortgage. The borrower effectively becomes both a landlord and an owner-occupier. This approach is commonly considered where immediate sale of the existing property is not preferred or market conditions are uncertain. How does Let to Buy work? The borrower refinances the existing home, releasing equity where applicable, and obtains lender consent to let the property to tenants. Rental income is then factored into affordability calculations. At the same time, a separate mortgage application is submitted for the new property. Each application is assessed independently, although lenders may consider the combined financial exposure and risk profile. Who is a Let to Buy mortgage suitable for? This arrangement may be appropriate for individuals with sufficient equity in their current home, stable income, and the capacity to manage landlord responsibilities. It is often used by borrowers relocating for employment, upsizing, or seeking to retain long-term investment exposure to residential property. Suitability depends on financial resilience, tolerance for rental risk, and compliance with tenancy regulations. Let to Buy vs Buy to Let: what’s the difference? A standard buy-to-let mortgage is typically used to purchase an investment property with no prior ownership connection. In contrast, a let-to-buy structure involves a primary residence being converted into a rental asset while a new home is acquired for personal occupation. The underwriting approach may differ, particularly regarding the treatment of existing residential commitments and equity release.