4.97 out of 5 based on 2,400+ reviews
4.97 out of 5 based on 2,400+ reviews
Our Let to Buy calculator gives an illustrative estimate of how much you may be able to borrow on your current home and towards your onward purchase, taking into account your income and the stamp duty that may apply.
Rated 4.97 out of 5 from 2,400+ reviews
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Use our Let to Buy calculator to see how much a Let to Buy mortgage on your current home may raise, the stamp duty that may apply to your next purchase, and how much you may need to borrow for your new home.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Estimated Let to Buy mortgage
Loan to value
Of your home's value of
Estimated equity released
| Purchase price | |
|---|---|
| Estimated stamp duty higher rates | |
| Your cash deposit | |
| Equity released from your current home | |
| Left on your current mortgage after the Let to Buy | |
| Mortgage needed for your new home |
Mortgage you may be able to borrow
Based on your income
Loan to value
Of the purchase price
Shortfall
The loan to value on your new home is above 90%. Fewer lenders may consider lending at this level, which could affect whether this plan is possible.
A shortfall means you may need more cash or a lower purchase price, or a lender willing to lend more based on your circumstances. An adviser can talk you through your options.
Stamp duty is estimated at the higher rates for additional residential property in England and Northern Ireland, because you would own two homes when you complete. Different taxes apply in Scotland and Wales. Stamp duty is collected by HM Revenue & Customs (HMRC).
Total borrowing across both mortgages:
These figures use simplified assumptions for illustration only. Each lender assesses income and affordability using its own methodology, which may differ from the approach below. Let to Buy: this estimate assumes a maximum loan of 75% of your home’s value. It tests whether the rent covers 145% of the interest at an illustrative 5% stressed rate (some lenders may use a higher stressed rate, particularly for fixed rates of less than five years), and usually uses the lower of the two amounts. It does not include extra borrowing a lender may allow by taking your personal income into account alongside the rent (known as top slicing). The Let to Buy mortgage first repays your current mortgage; anything left over is equity for your purchase. Your new home: the purchase price plus stamp duty at the higher rates, less your cash and the equity released, is the mortgage you need. The estimate compares that with an illustrative 5.5 times your household income. Lenders may also take your Let to Buy mortgage payment into account, so the amount available could be lower. Lender criteria vary and change, so the amounts available to you could be lower or higher.
Your report
A PDF of both mortgages, the stamp duty and how we worked them out, with a copy emailed to you.
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Your report
Our advisers compare over 300 lenders, including private banks, to help identify a suitable way to fund your move while keeping your current home.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.
The information provided by these calculators is for illustrative purposes only and does not constitute a mortgage offer, decision in principle or mortgage advice. This information does not contain all of the details you need to choose a mortgage. The results should not be the sole basis for a financial decision and depend on your individual circumstances and lender criteria.
The Let to Buy estimate uses typical lender assumptions for rental cover and loan to value. Some lenders may also take personal income into account alongside the rent. The estimate for your new home uses an illustrative income multiple. Where your income is used to support the Let to Buy mortgage, lenders may take this into account when assessing the mortgage for your new home, so the amount available could be lower than shown. Lender criteria vary and change, so the amounts available to you could be lower or higher. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The information provided is for general information purposes only and does not constitute tax advice. Stamp Duty Land Tax rates, thresholds and reliefs are based on current HMRC rules, which may change and will depend on your individual circumstances. You should seek independent tax advice where appropriate.
The results generated by this calculator are estimates only and are provided for illustrative purposes. The actual amount of Stamp Duty Land Tax payable may vary depending on your individual circumstances and eligibility for any reliefs or exemptions.
A Let to Buy mortgage lets you keep your current home, let it out and release equity towards your next one. Find out how it works, what you could borrow and the costs to plan for.
A Let to Buy mortgage refinances the home you live in now and changes its use so you can let it out. At the same time, you can release equity to use as a deposit for your new home. You then take a separate residential mortgage on the home you are moving to.
It is different from a buy-to-let mortgage. A Let to Buy mortgage is intended for people who become landlords of their own former home, sometimes called accidental landlords, and some lenders may take into account that the property has not been let before.
Things to consider: rental income is not guaranteed, and you would need to cover the Let to Buy payments during any periods without a tenant. You would have two mortgages to maintain and the responsibilities of a landlord, and tax may be payable on rental income and on any gain if you later sell.
Your current home is worth £750,000, it would let for £3,000 a month and you have £300,000 left on your mortgage. You have found a new home for £1,500,000 but have no buyer for your current home, and £250,000 in cash.
Keeping your home without Let to Buy
| Purchase price | £1,500,000 |
| Stamp duty at the higher rates | + £168,750 |
| Your cash | − £250,000 |
| Mortgage needed for the new home | £1,418,750 |
That is about 95% loan to value. Fewer lenders may consider lending at this level.
With a Let to Buy mortgage
| Let to Buy mortgage at 75% of £750,000 | £562,500 |
| Repays your current mortgage | − £300,000 |
| Equity released for the purchase | £262,500 |
| Mortgage needed for the new home | £1,156,250 |
That is about 77% loan to value. A lower loan to value may fall within more lenders’ criteria and may give access to a wider range of mortgage products.
At an illustrative 145% rental cover and a 5% stressed rate, the rent alone would support a loan of about £496,552. Some lenders may also take your personal income into account alongside the rent, known as top slicing, which may allow a higher loan, up to the lender’s maximum loan to value (75% in this example). Your income would also need to support the new mortgage, subject to each lender’s criteria and affordability.
Illustrative example only. Stamp duty uses the higher rates for additional residential property in England and Northern Ireland from 1 April 2025. Figures are not guaranteed and are not a recommendation that any particular mortgage is suitable for you.
The amount you can borrow depends mainly on the rent your home could achieve. The lender’s valuer will typically assess the market rent. As a rule of thumb:
Annual rent ÷ rental cover ÷ stressed rate = maximum loan
Example 1: a higher-rate taxpayer lets their home for £30,000 a year, on a two-year fixed rate. £30,000 ÷ 145% ÷ 5.5% = £376,176.
Example 2: a basic-rate taxpayer lets their home for £30,000 a year, on a five-year fixed rate. £30,000 ÷ 125% ÷ 4.5% = £533,333.
Your Let to Buy borrowing can also affect your new mortgage. Some lenders may want to see that the tenancy has started before they leave the Let to Buy mortgage payment out of your outgoings. Your new lender would typically need to be satisfied that it can lend what you need with the Let to Buy payment included, or accept the expected rent as covering it, subject to its own criteria. That is why our Let to Buy calculator estimates both mortgages together.
Illustrative examples only. Rental cover and stressed rates vary by lender and change over time, so the amount available to you could be lower or higher.
Because you keep your current home, you will usually pay the higher rates of stamp duty on your new home. In England and Northern Ireland that means a 5% surcharge on each band of the purchase price, which can add a significant amount to your costs.
| Part of the price | Higher rate |
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5 million | 15% |
| Over £1.5 million | 17% |
If you sell your previous main residence within three years of buying your new home, you may be able to claim back the surcharge from HM Revenue & Customs (HMRC). The claim must usually be made within 12 months of the sale, or within 12 months of the filing date of your stamp duty return if that is later. Non-UK residents pay a further 2%. Different taxes apply in Scotland and Wales.
Rates for residential property in England and Northern Ireland from 1 April 2025. This is general information, not tax advice. The stamp duty you pay depends on your circumstances and any reliefs, so take independent tax advice where appropriate.
Our Let to Buy calculator gives you a starting point. For Let to Buy lending criteria, the advantages and disadvantages, consent to let and the certificates you need before you let, read our Let to Buy mortgage guide.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.
The information provided by these calculators is for illustrative purposes only and does not constitute a mortgage offer, decision in principle or mortgage advice. This information does not contain all of the details you need to choose a mortgage. The results should not be the sole basis for a financial decision and depend on your individual circumstances and lender criteria.
The Let to Buy estimate uses typical lender assumptions for rental cover and loan to value. Some lenders may also take personal income into account alongside the rent. The estimate for your new home uses an illustrative income multiple. Where your income is used to support the Let to Buy mortgage, lenders may take this into account when assessing the mortgage for your new home, so the amount available could be lower than shown. Lender criteria vary and change, so the amounts available to you could be lower or higher. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The information provided is for general information purposes only and does not constitute tax advice. Stamp Duty Land Tax rates, thresholds and reliefs are based on current HMRC rules, which may change and will depend on your individual circumstances. You should seek independent tax advice where appropriate.
The results generated by this calculator are estimates only and are provided for illustrative purposes. The actual amount of Stamp Duty Land Tax payable may vary depending on your individual circumstances and eligibility for any reliefs or exemptions.
Whatever your situation, our mortgage team can advise on suitable solutions. We specialise in complex and bespoke mortgage solutions to help you find competitive terms.
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