Let to Buy Mortgages in Derby, Derbyshire and the UK

Let to buy is when you rent out the home you live in now and buy a new home to move into. It uses two mortgages. One is a buy to let mortgage on the home you are leaving. The other is a standard mortgage on the home you are buying. You can often raise some money from your current home to use as the deposit on the new one.

Yes. This is the most common reason people ask us about it. If your home has sat on the market or buyers keep pulling out, renting it out lets you move without waiting for a sale. You can still sell it later if you want to.

Most buy to let lenders want you to keep at least 20% to 25% equity in the home you rent out. So if your home is worth £250,000, you would often need to keep £62,500 or more of it. For the home you are buying, the deposit you need depends on the lender, your income and the price.

Lenders check that the rent covers the buy to let mortgage payment with room to spare. Many want the rent to be 125% to 145% of the payment, worked out at a test rate. Some lenders let you use your own income to top up a lower rent. We check this for you before you apply.

In most cases, yes. In England and Northern Ireland, if you still own your old home at the end of the day you buy the new one, you pay the higher rates. These add 5% to each Stamp Duty band. On a £300,000 home that is an extra £15,000.

Yes, if you sell your old home within 3 years of buying the new one. The old home must have been your main home, and you and your spouse or civil partner must not own any part of it after the sale. You then have 12 months from the sale, or 12 months from the filing date of the Stamp Duty return on the new home if that is later, to claim. You claim from HMRC online. Read the HMRC guidance.

It depends. If you rent out a home you used to live in, the buy to let mortgage is often classed as consumer buy to let. These have some protection from the Financial Conduct Authority. Other buy to let mortgages are not regulated. The mortgage on the home you move into is a regulated mortgage.

Yes. Rent counts as income, so you pay income tax on your profit. You cannot take all your mortgage interest off the rent. Instead you get a tax credit at the basic rate. When you sell the home later, you may pay Capital Gains Tax, though you get relief for the time you lived there. We do not give tax advice, so speak to an accountant.

It depends on your plans. A bridging loan suits you if you expect your home to sell in the next few months. It costs more, so you want to repay it fast. Let to buy suits you if you are happy to keep the home and rent it out for a few years or more.

Bridging lenders charge interest each month, not each year, so the cost adds up fast. You often pay an arrangement fee, a valuation fee and legal fees as well, and some lenders charge an exit fee. You also still pay the higher rates of Stamp Duty if you own both homes when you buy, though you can claim it back once you sell.

Some lenders will switch your mortgage to buy to let, and some will give you consent to let. Others will not. If you are in a fixed rate, leaving early may cost you an early repayment charge. We compare your lender’s offer with the rest of the market.

You need a gas safety check each year, an electrical check every 5 years and a valid Energy Performance Certificate. You must protect your tenant’s deposit and check their right to rent. In England, the Renters’ Rights Act came into force on 1 May 2026. It ended section 21 notices and moved most tenancies onto rolling terms. A letting agent can handle much of this for you.