--- title: "Let to Buy Mortgage Providers UK — Lenders, Criteria & Costs 2026 | First Rung Now" description: "Let-to-buy mortgage providers in the UK: leading BTL lenders for the let-to-buy structure, residential side options, deposit and stamp duty implications an..." lang: en-GB json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com", "logo": { "@type": "ImageObject", "url": "https://firstrungnow.com/logo-512.png", "width": 512, "height": 512 }, "description": "Independent UK mortgage education and broker matching service.", "address": { "@type": "PostalAddress", "addressCountry": "GB" } }, { "@context": "https://schema.org", "@type": "WebSite", "name": "First Rung Now", "url": "https://firstrungnow.com" }, { "@context": "https://schema.org", "@type": "Article", "headline": "Let to Buy Mortgage Providers", "description": "Let-to-buy mortgage providers in the UK: leading BTL lenders for the let-to-buy structure, residential side options, deposit and stamp duty implications and how to structure the deal.", "author": { "@type": "Organization", "name": "First Rung Now" }, "publisher": { "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com" }, "mainEntityOfPage": "https://firstrungnow.com/let-to-buy-mortgage-providers", "datePublished": "2026-06-15", "dateModified": "2026-06-15", "inLanguage": "en-GB" }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://firstrungnow.com/" }, { "@type": "ListItem", "position": 2, "name": "Mortgage Guides", "item": "https://firstrungnow.com/mortgage-guides" }, { "@type": "ListItem", "position": 3, "name": "Let to Buy Mortgage Providers", "item": "https://firstrungnow.com/let-to-buy-mortgage-providers" } ] }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "What is a let-to-buy mortgage?", "acceptedAnswer": { "@type": "Answer", "text": "Let-to-buy is the structure where you remortgage your current home onto a buy-to-let mortgage (so you can rent it out) and simultaneously take a residential mortgage on a new home for yourself to live in. It lets you keep your current property as an investment while moving to a new main home without needing to sell." } }, { "@type": "Question", "name": "Which lenders offer let-to-buy mortgages?", "acceptedAnswer": { "@type": "Answer", "text": "Most major BTL lenders accept let-to-buy applications. The high-street and specialist names commonly used include BM Solutions, The Mortgage Works (TMW), Paragon, Aldermore, Coventry for Intermediaries, Accord, Birmingham Midshires and Precise. The residential side of the deal can be placed with virtually any lender that allows the BTL background." } }, { "@type": "Question", "name": "Do I need two separate deposits for let-to-buy?", "acceptedAnswer": { "@type": "Answer", "text": "You need equity in your current home (typically 25% retained after the BTL remortgage — meaning a 75% LTV BTL mortgage) and a deposit for the new residential property. Often the residential deposit can be funded by releasing equity from the current home via the BTL remortgage — effectively recycling equity." } }, { "@type": "Question", "name": "Does let-to-buy attract the stamp duty surcharge?", "acceptedAnswer": { "@type": "Answer", "text": "Yes. Because you'll own two properties at completion of the new home, the 5% additional rate surcharge applies to the new residential purchase. If you sell the original property within 36 months and that property was previously your main residence, you can claim a refund of the surcharge." } }, { "@type": "Question", "name": "How is affordability assessed on let-to-buy?", "acceptedAnswer": { "@type": "Answer", "text": "The BTL side is assessed on rental coverage (ICR — typically 125%–145% of mortgage interest at a stressed rate of 5.5%–7%). The residential side is assessed on your income, with the new BTL mortgage payment treated as 'self-supporting' if rental income covers it — so your borrowing capacity isn't significantly reduced." } }, { "@type": "Question", "name": "Is let-to-buy a good idea?", "acceptedAnswer": { "@type": "Answer", "text": "It can be excellent if your current home generates a good rental yield, you want to retain property exposure, and you can fund the additional stamp duty. It's a poor choice if the rental wouldn't cover BTL costs comfortably, or if you'd be over-leveraged across two properties. Run the numbers carefully with a broker." } } ] } ] --- [Skip to content](#main) [London 020 8088 2997 ](tel:02080882997)[National 0333 567 1185 ](tel:03335671185) [![First Rung Now](/assets/logo-mark-CNo3p3DP.png) First Rung Now UK Mortgage Guides ](/) - Mortgages - Remortgages - Buy To Let - Bad Credit - Calculators - Guides - [Find a Broker](/find-a-mortgage-broker) - [About](/about) [London 020 8088 2997 ](tel:02080882997)[National 0333 567 1185 ](tel:03335671185) [Speak to a Vetted Broker](/find-a-mortgage-broker) 1. [Home](/) 2. [Mortgage Guides](/mortgage-guides) 3. Let to Buy Mortgage Providers UK Mortgage Guide # Let to Buy Mortgage Providers: Who Lends and How Let-to-buy is one of the most useful and misunderstood mortgage structures in the UK. It lets you keep your current home as a rental investment while moving to a new main residence — turning the property you used to live in into the start of a small property portfolio. The mechanics are well-trodden but require coordinating two lenders simultaneously, navigating an extra slice of stamp duty, and getting the rental coverage maths right. This guide walks through which UK lenders are most active in this market, how the deal actually fits together, and the practical considerations that decide whether let-to-buy is a smart move for your circumstances. First Rung Now Editorial Updated 15 June 2026 7 min read On this page 1. [Key takeaways](#key-takeaways) 2. [How let-to-buy actually fits together](#how-let-to-buy-actually-fits-together) 3. [BTL side: which lenders to look at](#btl-side-which-lenders-to-look-at) 4. [Residential side: lender choice](#residential-side-lender-choice) 5. [The stamp duty position](#the-stamp-duty-position) 6. [Rental coverage on the BTL side](#rental-coverage-on-the-btl-side) 7. [When let-to-buy is the right strategy](#when-let-to-buy-is-the-right-strategy) 8. [Speak with a vetted mortgage broker about let-to-buy mortgages](#speak-with-a-vetted-mortgage-broker-about-let-to-buy-mortgages) 9. [Frequently asked questions](#frequently-asked-questions) 10. [What is a let-to-buy mortgage?](#what-is-a-let-to-buy-mortgage) 11. [Which lenders offer let-to-buy mortgages?](#which-lenders-offer-let-to-buy-mortgages) 12. [Do I need two separate deposits for let-to-buy?](#do-i-need-two-separate-deposits-for-let-to-buy) 13. [Does let-to-buy attract the stamp duty surcharge?](#does-let-to-buy-attract-the-stamp-duty-surcharge) 14. [How is affordability assessed on let-to-buy?](#how-is-affordability-assessed-on-let-to-buy) 15. [Is let-to-buy a good idea?](#is-let-to-buy-a-good-idea) 16. [Related guides](#related-guides) 17. [Buying a Second Property to Rent Out](#buying-a-second-property-to-rent-out) 18. [Two Mortgages on Two Different Houses](#two-mortgages-on-two-different-houses) 19. [Buy to Let Mortgages](#buy-to-let-mortgages) ### Buy-to-let — related reads Landlord mortgages, HMOs, holiday lets and SPVs. - [Best HMO mortgage lenders Who actually competes for HMO mortgages in the UK right now. ](/best-hmo-mortgage-lenders) - [BTL houses in Sheffield Financing BTL houses across Sheffield postcodes, yields and HMO rules. ](/buy-to-let-houses-sheffield-mortgage) - [Holiday let mortgages Which UK lenders price holiday lets sharpest and how rental coverage works. ](/holiday-let-mortgages-best-rates) - [Limited company BTL misconceptions The truth about Section 24, SPVs and personal-name landlords in 2026. ](/landlord-misconceptions-limited-company-btl) - [Buying a second property to rent out Deposit, BTL mortgage, stamp duty and yield expectations for first-time landlords. ](/buying-a-second-property-to-rent-out) Explore the hubs [Mortgages explained](/mortgages)[Remortgages](/remortgages)[Buy-to-let mortgages](/buy-to-let)[Bad credit mortgages](/bad-credit-mortgages)[Mortgage calculators](/mortgage-calculators)[All mortgage guides](/mortgage-guides)[Find a mortgage broker](/find-a-mortgage-broker) ## Key takeaways - Let-to-buy involves two simultaneous mortgages: a BTL remortgage on the old home, a residential on the new. - BM Solutions, TMW, Paragon, Aldermore, Coventry and Accord dominate the BTL side of the deal. - Stamp duty surcharge of 5% applies on the new property but can be refunded if you sell the original within 36 months. - BTL affordability is rental-coverage based; residential affordability ignores BTL payments if rent self-supports them. - Equity release from the BTL remortgage often funds the new residential deposit — recycling equity efficiently. ## How let-to-buy actually fits together Want a vetted broker to help with How let-to-buy actually fits together? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) The structure has three moving parts that complete simultaneously. First, you remortgage your current home from a residential mortgage onto a buy-to-let mortgage with a new (or sometimes the same) lender. Most BTL remortgages release some equity at the same time — bringing the new BTL LTV up to around 75%. Second, you use the released cash plus your savings as the deposit for the new residential property. Third, you take a residential mortgage on the new property with a separate (or sometimes same) lender, and complete the purchase. The coordination is the hard part. Three completions need to align on the same day: BTL remortgage funds release on the old home, deposit transfers to the new home, residential mortgage funds release. Most experienced brokers and conveyancers can manage this, but it requires deliberate planning across the chain — particularly if the new home purchase has its own chain attached. ## BTL side: which lenders to look at Buy-to-let · keep reading - [Best HMO mortgage lenders Who actually competes for HMO mortgages in the UK right now. ](/best-hmo-mortgage-lenders) - [BTL houses in Sheffield Financing BTL houses across Sheffield postcodes, yields and HMO rules. ](/buy-to-let-houses-sheffield-mortgage) Browse the full hub: [Buy-to-let mortgages](/buy-to-let) Want a vetted broker to help with BTL side: which lenders to look at? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) Several BTL lenders specialise in or are particularly competitive on let-to-buy applications. **BM Solutions** (part of Lloyds) is the largest UK BTL lender and is well-versed in let-to-buy structures. Their criteria are straightforward and their service is fast. **The Mortgage Works (TMW)** — part of Nationwide — is another major name, particularly competitive on portfolio landlords and personal-name BTL. **Paragon Bank** is the leading specialist BTL lender, particularly strong on limited company BTL, complex landlord profiles, and HMO conversions. **Aldermore** is well-known for taking flexible views on let-to-buy applicants who are accidental landlords (those keeping the old home because they're moving for work, not for investment reasons). **Coventry for Intermediaries** is competitively priced on standard let-to-buy where the applicant has a clean profile. **Accord** (part of Yorkshire Building Society) is also active, with particularly competitive rates on standard residential property types. **Precise** and **Birmingham Midshires** round out the specialist names commonly used. ## Residential side: lender choice Want a vetted broker to help with Residential side: lender choice? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) The residential side of let-to-buy is technically straightforward — you're taking a residential mortgage on a new home. Almost any lender that does residential mortgages will accept an existing BTL property in the background, provided you can demonstrate the BTL is self-supporting (rental income covers the BTL mortgage payment plus a buffer). The key consideration is how the lender treats the existing BTL in affordability calculations. Some lenders (Halifax, Nationwide, Santander) treat self-supporting BTLs as financially neutral — the rent covers the cost, so it doesn't reduce your residential affordability. Others apply a small deduction or require evidence of a rental buffer. If you have multiple BTL properties — i.e. you're a portfolio landlord — many residential lenders apply stricter background portfolio assessments. The four or more property threshold often triggers full portfolio stress testing. Brokers usually steer portfolio applicants towards lenders who handle this routinely, such as TMW, Coventry, Halifax and Skipton. ## The stamp duty position Buy-to-let · keep reading - [Holiday let mortgages Which UK lenders price holiday lets sharpest and how rental coverage works. ](/holiday-let-mortgages-best-rates) - [Limited company BTL misconceptions The truth about Section 24, SPVs and personal-name landlords in 2026. ](/landlord-misconceptions-limited-company-btl) Browse the full hub: [Buy-to-let mortgages](/buy-to-let) Want a vetted broker to help with The stamp duty position? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) Stamp duty on the new residential purchase attracts the 5% additional rate surcharge because you'll own two properties at completion. On a £400,000 new home, the surcharge alone adds £20,000 to the tax bill versus a single-property purchase. The good news: if the original property was your main residence and you sell it within 36 months of completing on the new home, you can claim a refund of the surcharge. This catches many let-to-buy borrowers who originally intend to keep the old property as a long-term BTL but later decide to sell. The 36-month window is generous. If you're confident from the outset that the old property will remain a long-term rental, the surcharge is a fixed cost of the strategy and should be factored into the deal economics. ## Rental coverage on the BTL side Want a vetted broker to help with Rental coverage on the BTL side? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) BTL mortgages are sized based on the property's rental income, not your salary. Lenders calculate an Interest Coverage Ratio (ICR) — the rent must exceed the stressed mortgage interest by 125% (basic-rate taxpayers) or 145% (higher-rate taxpayers) at a stressed interest rate of typically 5.5%–7%. Worked example: a property valued at £250,000 with a 75% LTV BTL mortgage of £187,500. At a stressed interest rate of 6% over 25 years on interest-only, monthly interest is £937. For a higher-rate taxpayer at 145% ICR, the required monthly rent is £1,358. If the property would only rent for £1,150, the lender will reduce the maximum loan accordingly. This is the most common reason let-to-buy applications fail to deliver the desired equity release — the rental income doesn't support the BTL loan size needed to fund the new deposit. Always run rental coverage numbers before committing to the strategy. ## When let-to-buy is the right strategy Buy-to-let · keep reading - [Buying a second property to rent out Deposit, BTL mortgage, stamp duty and yield expectations for first-time landlords. ](/buying-a-second-property-to-rent-out) - [85% LTV BTL mortgages Specialist BTL lenders at 85% LTV, rates and rental coverage. ](/85-loan-to-value-buy-to-let-mortgages) Browse the full hub: [Buy-to-let mortgages](/buy-to-let) Want a vetted broker to help with When let-to-buy is the right strategy? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) Three scenarios consistently make let-to-buy attractive. The first is the "accidental landlord" scenario — you've been offered a job in a new area, your current home would be difficult to sell quickly or in a buyer's market, but rental demand is strong. Let-to-buy lets you preserve optionality. The second is the deliberate property investor strategy — you're moving up the housing ladder and want to start building a rental portfolio by retaining each former home as a BTL. Done over 2–3 moves, this builds a substantial portfolio without ever having to find separate BTL deposits. The third is the "best of both worlds" scenario for couples upsizing — neither party wants to sell their existing property because the rental return is strong and the long-term capital appreciation is expected, but they want to live together in a larger home. Conversely, let-to-buy is a poor choice when the rental wouldn't comfortably cover BTL costs, when you're already at the edge of overall affordability across two properties, or when the additional stamp duty surcharge meaningfully damages the deal economics. Your home may be repossessed if you do not keep up repayments on your mortgage. First Rung Now is not FCA authorised or regulated; we introduce consumers to FCA-regulated mortgage brokers. Nothing in this article is financial advice. Vetted UK Broker Match ### Speak with a vetted mortgage broker about let-to-buy mortgages Free, no-obligation introduction to an FCA-regulated adviser with experience in your specific scenario. We've done the due diligence so you don't have to. - FCA-regulated only - Typical reply in 1 working day - No upfront fees [Match me with a broker](/find-a-mortgage-broker) ## Frequently asked questions ### What is a let-to-buy mortgage? ### Which lenders offer let-to-buy mortgages? ### Do I need two separate deposits for let-to-buy? ### Does let-to-buy attract the stamp duty surcharge? ### How is affordability assessed on let-to-buy? ### Is let-to-buy a good idea? ## Related guides [ ### Buying a Second Property to Rent Out Comparison structure if you're keeping your home and buying a separate BTL. Read guide ](/buying-a-second-property-to-rent-out)[ ### Two Mortgages on Two Different Houses Rules around holding mortgages on more than one property. Read guide ](/two-mortgages-different-houses)[ ### Buy to Let Mortgages BTL fundamentals — SPV, ICR, portfolio rules. Read guide ](/buy-to-let) First Rung Now Independent UK mortgage education and broker matching. We don't sell mortgages — we help you understand them, then connect you with vetted advisers. 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