Switching to a Buy to Let Mortgage
Thinking of turning your current home into a rental property? Switching to a buy to let mortgage can be a great way to make the most of your property investment — but there are some important rules, costs, and lender requirements to understand before you make the move.
At Mortgage Bridge, we’ve helped many homeowners remortgage to buy to let, whether they’re moving elsewhere, planning for the future, or just ready to start building a property portfolio. Here’s everything you need to know about how the switch works and how to do it right.
What Does Switching to a Buy to Let Mortgage Mean?
If you currently live in your property and want to rent it out, you can’t usually keep your residential mortgage. You’ll need to switch to a buy to let mortgage, which is designed for landlords.
Buy to let mortgages work differently — they’re assessed based on the potential rental income rather than your personal earnings. The rates, deposit requirements, and tax rules also differ.
You can do this by either:
- Asking your lender for “consent to let”, or
- Remortgaging to a buy to let deal with your existing or a new lender.
Which option is best depends on your plans, finances, and how long you intend to rent the property.
Can I Rent Out My Home Without Changing My Mortgage?
In most cases, no — not without permission.
If you start renting out your home without informing your lender, you’ll be breaching your mortgage terms. That can cause serious problems, including higher interest rates or even a demand to repay the mortgage immediately.
However, some lenders will give temporary “consent to let”, which lets you rent your home for a short period (usually 6–12 months) while keeping your residential mortgage. This can be useful if you’re moving away temporarily or testing the market before fully switching to buy to let.
For longer-term rental plans, though, a full buy to let remortgage is usually the right move.
How Do I Switch from Residential to Buy to Let?
Switching to a buy to let mortgage is similar to applying for any other remortgage, but with a few key differences.
Here’s how the process usually works:
- Check your current mortgage terms – Some lenders charge early repayment fees if you switch before your deal ends.
- Work out your expected rental income – This determines how much you can borrow. Lenders typically want rent to cover at least 125–145% of your mortgage payments.
- Speak to a specialist broker – We’ll check which lenders suit your situation and how much you could borrow.
- Apply for your new buy to let mortgage – Once approved, your new deal replaces your residential mortgage.
If you’re unsure whether to stay with your current lender or switch, we can compare both options for you.
How Much Deposit Do I Need for a Buy to Let Mortgage?
Buy to let mortgages usually require a larger deposit than residential ones.
Typically, you’ll need at least 25% of the property’s value, though some lenders will accept 20%. The more you put down, the better your interest rate is likely to be.
If you’re remortgaging and already own the property, your equity acts as your deposit. We’ll calculate this for you and show how it affects your borrowing power.
What Income Do I Need to Switch to Buy to Let?
Even though lenders focus mainly on rental income, many still have a minimum personal income requirement — often around £25,000 per year.
This doesn’t mean your salary has to cover the mortgage. It’s simply to show you can manage your finances responsibly. The key figure lenders use is the rental coverage ratio — your expected rent compared to your monthly mortgage payment.
As a rough guide, if your mortgage payment is £800 per month, lenders will want to see rent of at least £1,000–£1,200.
Can I Get a Buy to Let Mortgage if I Have Bad Credit?
Yes — it’s possible, but your lender options may be more limited.
At Mortgage Bridge, we work with specialist lenders who understand that credit history doesn’t define the whole picture. If you’ve had late payments, defaults, or even a CCJ, there are still buy to let products available, especially if you’ve built up equity in your home.
The stronger your deposit or equity, the more flexible lenders tend to be. We’ll help you find one who’ll take a fair view of your situation.
Can I Live in a Property with a Buy to Let Mortgage?
No — buy to let mortgages are for rental properties only.
If you move back in, you’ll need to switch back to a residential mortgage. Living in the property under a buy to let mortgage breaches your lender’s conditions.
That said, if your situation changes — for example, you decide to move back in permanently — it’s usually straightforward to switch back with the right advice.
What Are the Costs of Switching to a Buy to Let Mortgage?
When switching, it’s important to factor in the potential costs involved. These might include:
- Arrangement or product fees – Often £1,000–£2,000, though some lenders add these to the loan.
- Valuation and legal fees – Similar to a standard remortgage.
- Higher interest rates – Buy to let rates are usually slightly higher than residential ones.
- Stamp Duty – If you’re buying a new property instead of converting your current one, an extra 3% surcharge applies to second homes.
We’ll break down all costs clearly before you commit, so there are no surprises.
How Is Affordability Assessed for Buy to Let?
For residential mortgages, affordability is based on your personal income and outgoings. But for buy to let, lenders focus on rental income and yield.
They’ll usually run a stress test, checking that your rental income comfortably covers payments even if interest rates rise.
Some lenders offer top-slicing, where your personal income can be used to support affordability if rental income falls slightly short. This can be particularly useful if you’re switching your current home to rent it out.
What if I Have a Residential Mortgage and Want to Buy Another Home?
If you plan to keep your current property and buy a new one to live in, switching to buy to let can free you up to do exactly that.
You’d remortgage your existing home to a buy to let mortgage, then use the rental income (and potentially any released equity) to help with your deposit for your new home.
We’ve helped many clients take this route — turning their old home into an investment property while moving into a new one themselves.
What Are the Pros and Cons of Switching to Buy to Let?
Pros:
- You can earn rental income from your existing property.
- Potential for long-term capital growth.
- Keeps a foothold on the property ladder if you’re moving elsewhere.
- You can release equity to fund your next purchase.
Cons:
- Higher deposits and interest rates.
- Potential tax implications (on rental income and capital gains).
- More responsibility as a landlord — including maintenance and legal duties.
Before switching, it’s worth speaking to both a mortgage adviser and an accountant to understand the financial and tax implications.
How Can Mortgage Bridge Help with Switching to Buy to Let?
This is exactly the kind of scenario we deal with every day.
At Mortgage Bridge, we’ll:
- Review your current mortgage and identify the best way to switch.
- Compare buy to let deals across both mainstream and specialist lenders.
- Calculate your expected rental income and borrowing potential.
- Handle the full remortgage process from start to finish.
We’ll also flag any tax or legal considerations early so you can make fully informed decisions.
If you’re unsure where to start, let’s explore your options together — we’ll make sure your move to buy to let is smooth, compliant, and financially worthwhile.
Ready to Make the Switch?
Switching to a buy to let mortgage can open the door to new investment opportunities, but it pays to do it properly.
Whether you’re looking to rent out your current home, build a property portfolio, or free up equity for your next move, we’re here to help every step of the way.
If you’d like to find out what’s possible for your situation, get in touch with us at Mortgage Bridge. We’ll help you understand your options, compare the best deals, and make your switch with confidence.