Let to Buy Case Study – Buying without Selling

Let to buy is a unique and increasingly popular mortgage strategy that allows homeowners to keep their existing home and rent it out while purchasing a new home to live in.

It works by remortgaging your current home onto a buy to let mortgage (with the affordability being based on the projected rental income) and releasing equity to use as a deposit for another mortgage on a new home (with this mortgage based on your annual salary).

Here’s how it works in practice.

The Scenario

Our clients approached us looking to convert their current London home to a buy to let and purchase a new residential home in Middlesex – a typical let-to-buy scenario.

They needed to:

• Swap their current residential mortgage to a buy to let
• Release as much equity as they could from the property with the remortgage, putting a portion of this towards their new home purchase
• Secure a new residential mortgage for their future home

The Challenges

1. The wife was on maternity leave at the time of application, and the clients were unsure whether her income could be used for affordability purposes.
   
   
2. The stress test on the buy-to-let mortgage was challenging, as their estimated rental income of £2,100 per month (valued by an ARLA-accredited estate agent) was close to the edge in terms of eligibility based on the mortgage repayments and amount borrowed.

The Solution

We placed the buy-to-let mortgage with a high street lender on a five-year fix product – this ensured the most relaxed stress testing, and we managed to secure a 75% LTV mortgage, meaning they released £318k from the property.

The new residential purchase was placed with a different lender, chosen for their flexibility on maternity leave cases. The lender accepted:

• A letter from the employer confirming the client’s return to work at her previous salary.
• The client's most recent payslip pre-maternity showing their full income
• Proof of savings to cover financial commitments for the remainder of their maternity leave.

Many people on maternity leave assume they must wait until they return to work to secure a mortgage, but this isn't the case.

The Numbers

• £318k was released from the remortgage.
• £90k of that went towards the deposit on their new property.
• Their new home was valued at £550k, with a £455k mortgage secured.
• The couple earn £85k between them, meaning their total debt to income was close to 10x before their rental income was factored in.
• The original property in London was converted into a rental, while they moved into their new home in Middlesex.
• They had enough cash reserves to cover stamp duty separately, ensuring a smoother transition.

This case demonstrates how the right lender knowledge and strategic product selection can help clients move forward confidently, even in complex scenarios.

Considering let to buy? We’ll find the right lenders to make it happen. Contact us today to explore your options.

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