Let to Buy Mortgages

Let to buy works particularly well for homeowners who have built up good equity in their current home, whose property is in a strong rental market, and who are ready to move into something larger or in a different area. It also appeals to those who do not want to sell in a slow market, preferring to hold the property until conditions improve.

Before deciding on let to buy, it is worth modelling out the full financial picture. This includes what your new residential mortgage will cost, what your buy-to-let mortgage will cost, what rent the existing property is likely to achieve, and what your net position looks like after tax. Section 24 changes mean rental income is taxed differently for higher rate taxpayers than it used to be, which affects the calculation.

Some clients in this position also consider whether a limited company structure for the rental property makes sense from a tax perspective. This adds complexity to the transaction but can improve long-term profitability. We can advise on the buy-to-let mortgage products available and refer you to a specialist accountant for the tax side.

Let to buy is a more complex transaction than either a standard remortgage or a straightforward house purchase. We handle both sides of the transaction together, which keeps everything coordinated and reduces the risk of one side falling through because the other hit a problem.