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        0808 189 0463

        Updated: April 20, 2024

        Buy to sell mortgages: How to finance a house flip and more

        Find out about financing a house to sell (also known as a renovation mortgage) and how to get the best rate.

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        Buy to sell mortgages are an attractive option for anyone looking to buy, and then sell, a property quickly.

        In this article you’ll find out what a buy-to-sell mortgage is, how to get one and where to find the best interest rate deals.

        What is a buy to sell mortgage?

        As the name suggests, a buy-to-sell mortgage is a short-term home loan available for anyone who is looking to buy a property and then sell it on, for a profit, soon after – typically within twelve months.

        Property investors are the prime customer for buy to sell mortgages, where an opportunity to buy a property, complete some renovations, and then sell it on straight away is identified. This is also known as ‘flipping’.

        This type of finance is, essentially, a bridging loan. Unlike standard mortgages, buy to sell loans are arranged within days, rather than months and can be used to buy properties that are unfit to live in when they’re first bought.

        Get Started with a Broker

        Maximise your chance of approval with specialist advice from an expert in Buy to Sell Mortgages.

        When would you use one?

        Buy to sell mortgages provide a bridge for a short-term gap in financing and can be used in a range of situations, such as:

        • Auction property purchases where 28 day completion timescales are usually in place (BTS mortgages are also referred to as auction finance)
        • Complete renovation/rebuild of a currently uninhabitable property
        • Flipping – buying and selling a property for a profit in a short timescale (weeks/months)

        In all of the above scenarios, time is very much of the essence, which means an appropriate alternative to standard mortgages, which may take weeks or even months, needs to be found.

        This is where buy to sell mortgages can provide an effective solution.

        However, this type of lending is generally only available through specialist lenders.

        So, the challenge is how to find them – quickly! This is where having an experienced mortgage broker, with experience in this area, can be a real advantage.

        How to get a buy-to-sell mortgage?

        If you’re looking for a buy to sell mortgage there’s a few simple steps you can take straight away that will make the whole process much swifter and more straightforward.

        This is how we recommend you do it…

        Step 1. Do your research

        First things first, you should thoroughly research the local property market and auctions before you commit to a purchase.

        What investment return can you realistically expect from the dwelling you’re looking at? Have you spoken with any local agents about the prospects within the area?

        Renovation budgets are also an important consideration, bearing in mind the boom in material prices due to current shortages.

        It’s always wise to place a buffer on what you expect overall costs to be.

        Step 2. Prepare your documents, exit strategy and credit reports

        You will want to have three months bank statements, proof of address and proof of income all prepared and ready for when you want to apply for your mortgage.

        As this is a bridging product, you will also need to provide a clear exit strategy to evidence to your lender how you will repay your loan.

        With this type of home loan, it’s nearly always the property sale that will be used.

        It is also very important to know your credit score and have access to your reports. This is to correct any issues or anomalies, which you may not have realised were registered on your record.

        We offer a dedicated credit reports hub, which you can download your credit reports through.

        Step 3. Speak to an experienced buy-to-sell mortgage broker

        Once you’ve got your documents and your credit reports together, you will need to speak to a broker who specialises in how to get buy-to-sell mortgages, as the number of lenders for this type of finance is limited.

        By using a broker, they will be able to identify which lenders can help, saving you a lot of time and manage your application so it can be prepared and submitted quickly.

        Our free, broker-matching service will assess your needs and circumstances to pair you with a mortgage advisor who’s ideally placed to help you – Make an enquiry to get started.

        Eligibility requirements

        The key to a successful buy to let mortgage application is not just speed or having an effective exit strategy prepared, it’s also about having sufficient liquidity available as larger deposits are usually a standard requirement.

        Typically, deposits for this type of finance are between 20%-25%.

        This may vary from lender to lender.

        The more deposit you’re able to put down, the more lenders will be willing to consider your application and the better terms (and rates) you’ll qualify for.

        In addition, other general eligibility requirements will centre on:

        Bullet Tick Your annual income/outgoings (most lenders require annual earnings of £25,000)
        Bullet Tick Your credit rating

        How much can you borrow?

        The amount you can borrow largely follows suit with other standard mortgages and, again, will vary from lender to lender, but around 4.5x your annual earnings is usually a fair indicator.

        This can include a partner’s salary if you’re buying with someone else.

        Try our affordability calculator below to work out your maximum borrowing.

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        Mortgage Affordability Calculator

        Our affordability calculator can tell you how much you can potentially borrow from a mortgage lender. Simply enter your total household income below and our calculator will do the rest.

        Input full salaries for all applicants

        You could borrow up to 

        Most lenders would consider letting you borrow

        This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.

        Some lenders would consider letting you borrow

        This is based on 5 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.

        A minority of lenders would consider letting you borrow

        This is based on 6 times your household income, a salary multiple you will struggle to get without a broker. Six-times salary mortgages are usually only available under very specific circumstances.

        Get Started with an expert broker to find out exactly how much you could borrow.

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        Mortgage lenders and rates

        Here’s a few examples, currently (May 2023), of what terms some lenders are offering:

        United Trust offers a buy-to-sell mortgage at 75% loan-to-value (LTV), with the loan term available up to 36 months, loan amounts between £125,000-£25,000,000 and the monthly interest rate ranging between 0.48% and 1.1%.

        Alternatively, LendInvest has a 75% LTV product available with the loan term up to 18 months, maximum loan amount at £15m and monthly rate ranging between 0.49% and 0.69%.

        The rates listed above are fairly standard for this product type, but they are subject to change at any time at the lender’s discretion. Speaking to a mortgage broker is the best way to keep track of interest rates at any given time.

        Are there alternatives to buy to sell mortgages?

        The main alternative to buy to sell mortgages, or any standard bridging loan, is buy-to-let, however these are only worth considering if the property you intend to buy does not need any refurbishment and your long-term plan is to rent it out.

        Buy-to-let mortgages would also be much slower to get approved, which could make a big difference to you securing the property you want (at auction, say) or not.

        This would also be the case for residential mortgages.

        Get matched with a buy to sell mortgage broker

        A buy to sell mortgage is a great option when looking to quickly purchase a property for a profit and with the right advice you will be able to do this.

        This is why the shrewd move is to seek the help of an experienced buy to sell mortgage broker who would already know which lenders will be able to help and offer the best terms available.

        Call 0808 189 0463 or make an enquiry and we can arrange a free, no-obligation call with a buy to sell mortgage broker with the right experience today.

        Get Started with a Broker

        Maximise your chance of approval with specialist advice from an expert in Buy to Sell Mortgages.


        As the repayment vehicle for a buy-to-sell mortgage is usually through the sale of the property, you will either need to repay the loan out of your own funds or request a new line of credit through your lender. Remortgaging is one possible option to consider.

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        We can help! We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Buy-To-Let mortgages. Ask us a question and we'll get the best expert to help.

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        Pete Mugleston

        Pete Mugleston

        Mortgage Expert, MD

        About the author

        Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

        Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

        FCA Disclaimer

        *Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

        Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.