Comparison · Mortgages · 2026

Let to Buy vs Consumer Buy to Let Mortgage 2026: What is the Difference?

Let to buy and consumer buy to let are both routes to becoming a landlord while keeping or acquiring a residential mortgage elsewhere, but they solve different problems and sit under different regulatory regimes. Let to buy is about moving house without selling your current home; consumer buy to let is about the FCA-regulated status that applies when you let to a close family member. Here is how they compare in 2026.

TL;DR - 30-Second Summary

- Let to buy: remortgage your current home to buy-to-let, take out a new residential mortgage on the property you move into
- Consumer buy to let: FCA-regulated buy-to-let mortgage used when letting to a close family member
- Not mutually exclusive: a let to buy arrangement can itself be classed as consumer buy to let if the tenant is a close relative

Side by Side: Let to Buy vs Consumer Buy to Let

Feature	Let to Buy	Consumer Buy to Let
What it describes	A house-move strategy: rent out old home, buy new one	A regulatory category when letting to close family
FCA regulation	Usually unregulated (standard BTL)	Regulated like a residential mortgage
Affordability basis	Rental income stress test (125%-145%)	May include full personal affordability check
Number of mortgages involved	Two — remortgage old home + new purchase mortgage	One — the buy-to-let mortgage itself
Typical tenant	Open-market tenant	Close family member (spouse, child, parent, sibling)
Additional-property SDLT surcharge	Usually applies to the new purchase	Applies if it results in owning 2+ properties

What Is Let to Buy?

Let to buy is a strategy, not a single mortgage product. It typically involves remortgaging your current residential property onto a buy-to-let mortgage — sometimes releasing equity in the process — while simultaneously arranging a new residential mortgage to buy the property you plan to live in. It suits homeowners who want to keep their current property as an investment rather than sell it, perhaps because they cannot sell quickly enough, want to retain a family home, or see strong rental demand in the area.

Because two mortgage applications are involved, let to buy usually requires more paperwork and a broker experienced in coordinating both transactions to complete on the same day.

What Is Consumer Buy to Let?

Consumer buy to let (CBTL) is a regulatory classification introduced to close a gap where landlords letting to close family members were not making a genuine business/investment decision in the way the standard (unregulated) buy-to-let market assumes. If you plan to let a property to your spouse, child, parent, grandparent or sibling — or you are not primarily letting the property for business purposes — your mortgage may be classed as consumer buy to let and regulated by the FCA, giving you residential-style protections such as access to the Financial Ombudsman Service.

Not all lenders offer CBTL mortgages, and criteria can be stricter than standard buy-to-let lending, since the FCA requires a fuller affordability assessment similar to a residential mortgage.

When the Two Overlap

The two concepts are not mutually exclusive. If you are doing a let to buy arrangement and intend to rent your old home to your adult child or a parent rather than to the open market, that specific mortgage would need to be arranged as consumer buy to let, not standard buy-to-let — meaning it would be FCA regulated and subject to a different affordability assessment.

Always tell your mortgage broker or lender upfront who the intended tenant will be, since choosing the wrong mortgage category can invalidate the loan or breach its terms.

Who Should Choose What?

Consider let to buy if...

- You want to move but keep your existing home as a rental
- You will let to an open-market tenant
- You have enough equity to fund a new deposit

Consider consumer buy to let if...

- You plan to let a property to a close family member
- You want FCA-regulated consumer protections
- The letting is not primarily a business/investment decision

A whole-of-market mortgage broker can confirm which category applies to your situation and identify lenders who offer the right product combination.

Frequently Asked Questions

What is a let to buy mortgage?

Let to buy describes the process of remortgaging your current home onto a buy-to-let mortgage so you can rent it out, while taking out a new residential mortgage to buy the property you will live in. It is not a single named mortgage product — it is two linked transactions, usually arranged together so the buy-to-let remortgage completes at the same time as the new purchase.

What is a consumer buy to let mortgage?

A consumer buy to let (CBTL) mortgage applies when a landlord lets a property to an immediate family member (spouse, civil partner, child, parent, grandparent, sibling) rather than to the open market, or where the landlord is not primarily letting for business/investment purposes. Because this looks more like a residential arrangement, CBTL mortgages are regulated by the FCA in the same way as a standard residential mortgage, offering the borrower additional consumer protections.

Is a let to buy mortgage regulated by the FCA?

Usually not. Most let to buy arrangements use standard buy-to-let mortgages, which are typically unregulated because they are treated as a business/investment activity. However, if you intend to let the property to a close family member as part of the let to buy plan, that specific element may fall under consumer buy to let regulation.

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Can I do let to buy without selling my current home?

Yes — that is the entire purpose of let to buy. Instead of selling your current property to fund a new purchase, you remortgage it onto a buy-to-let deal (releasing some equity if needed for the new deposit) and keep it as a rental property while buying a new home to live in.

What rental income do lenders require for a let to buy remortgage?

Lenders typically require the expected rental income to cover 125%-145% of the mortgage payment at a stress-tested interest rate (often 5.5%-6.5%), similar to standard buy-to-let affordability rules. The exact figure depends on the lender and whether you are a basic or higher-rate taxpayer.

Do consumer buy to let mortgages have different affordability tests?

Yes. Because CBTL mortgages are treated more like residential lending, some lenders apply full affordability assessments based on the landlord's personal income and expenditure, rather than relying solely on the rental income stress test used for standard buy-to-let mortgages.

Do I pay the stamp duty surcharge on a let to buy or consumer buy to let purchase?

If you already own a property and are purchasing an additional one, the 5% additional property SDLT surcharge generally applies on top of standard rates for the new purchase, whether structured as let to buy or consumer buy to let, unless a specific relief applies (such as replacing your only or main residence).

Which route is cheaper: let to buy or selling and buying again?

It depends on local rental yields, mortgage rates and how much equity you have. Let to buy avoids the cost and disruption of selling (estate agent fees, chain risk) and lets you benefit from future rental income and capital growth on your original home, but it means taking on landlord responsibilities and paying the additional-property SDLT surcharge on the new purchase.

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Disclaimer: This guide provides general information about UK mortgage lending as of July 2026 and is not mortgage advice. Lender criteria, stress-test rates and regulatory classification vary and can change. Speak to a whole-of-market mortgage broker before proceeding with a let to buy or consumer buy to let arrangement. For guidance see fca.org.uk/consumers/mortgages.

About the author

James Morgan

Property & Mortgage Writer

James Morgan has been writing about UK property and mortgages since 2016. He covers the full purchase journey — affordability checks, mortgage product comparison, the deposit and loan-to-value puzzle, stamp duty (SDLT in England and Northern Ireland, LBTT in Scotland, LTT in Wales), first-time buyer reliefs, conveyancing costs, and what to expect at completion. James also writes on the landlord side: buy-to-let mortgages, the 3% additional-property SDLT surcharge, Section 24 finance-cost restriction, rental yield maths, and the practical realities of being a small private landlord in the post-2017 tax regime. He has a particular interest in the remortgage decision — when to switch product, the trade-off between rate and arrangement fee, early repayment charges, and how to read a mortgage offer document. James's mortgage worked examples are built up from the underlying amortisation schedule, not borrowed from comparison sites, and stamp-duty figures are verified band-by-band against the HMRC SDLT calculator. He writes to CalcHub's editorial standards, with primary-source citations to HMRC, Revenue Scotland and the Welsh Revenue Authority, and clear disclosure that CalcHub does not sell mortgages or take affiliate commission on regulated mortgage products.

Property journalist since 2016
UK mortgage and stamp-duty specialism (SDLT, LBTT, LTT)
Writes to CalcHub editorial standards (primary-source citation, annual review)

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Last updated: 2 July 2026How we verify