A “let to buy” mortgage is an increasingly popular option for homeowners looking to move but wanting to keep their existing property. Essentially, this type of mortgage allows you to rent out your current home while securing a new property for yourself. Here are some key benefits of choosing this route:

1.Property Investment Opportunity

By renting out your existing home, you can generate a steady rental income, which may cover your mortgage payments or even provide a profit. This turns your property into a source of income rather than just an asset you leave behind.

2. Retaining Long-term Capital Growth

Real estate is often a long-term investment, and property values tend to rise over time. By holding onto your original home, you can benefit from future capital growth. If the property market in your area increases, you’ll be able to sell for a profit when the time is right.

3. Less Stressful Move

With a “let to buy” mortgage, you avoid the stress of rushing to sell your current home before buying a new one. This flexibility allows you to take your time finding the perfect property while still keeping your original home as an asset.

In short, a “let to buy” mortgage gives you both financial flexibility and an opportunity to grow your investment portfolio while maintaining stability in the housing market.

Stamp Duty: Remember however that you will have to pay enhanced stamp duty land tax on any purchase if you own another property, although in some cases you may be able to claim this back if you sell the original property within a certain time frame.

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

Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority. 

Property prices can fall as well as rise. There is no guarantee your home(s) will increase in value. You will have two mortgages to repay. Make sure you can afford the combined payments, even if your rental property is vacant or the rental income is lower than expected.