Content Writer
Mortgage Advisor & Director
If you're planning to buy a property, perhaps to renovate or improve it, and then sell it within a short timeframe, a buy-to-sell mortgage could be a useful option to finance the purchase. Here, we’ll explain how buy-to-sell mortgages work, where to find UK lenders who are open to this type of finance, and how to compare the latest rates.
What is a buy-to-sell mortgage?
This typically refers to shorter-term home loans used by investors who want to purchase a property, and then sell it again within a relatively short timeframe (usually 12 months). These mortgages are commonly used by property developers, portfolio investors, or people “flipping” houses.
Because traditional lenders typically expect borrowers to keep a property for several years, a buy-to-sell mortgage is better suited for those planning to exit quickly, especially if the property is uninhabitable or not suitable for a standard mortgage.
How does it work?
Buy-to-sell mortgages are specialist investment finance products and work similarly to short-term bridging loans. They are essentially designed to fulfil a financing gap for a specific period and can allow you to:
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Buy a property that might not qualify for a standard mortgage (perhaps something uninhabitable or with structural issues).
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Borrow for a period ranging from 6 to 18 months, depending on the lender.
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Refurbish or renovate a property quickly and then resell it.
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Purchase a property at auction where the speed of securing financing is crucial.
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Repay the loan when the property is sold, typically with no early repayment charges.
Interest is often “rolled up,” meaning it accrues over the loan term and is eventually paid alongside the initial principal. Because of the short-term nature and added risk, interest rates are higher than standard mortgages, and most lenders require you to have a clear exit strategy (plan to repay the loan and interest at the end of the term).
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Lending criteria for this financing
Mortgage lenders offering buy-to-sell products usually have stricter eligibility criteria compared to standard residential or buy-to-let mortgages. Here are some of the most common requirements relating to applicants and the property:
Property-specific criteria
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Property condition: Buy-to-sell mortgages are often used for uninhabitable or run-down properties. Some lenders specialise in funding heavy refurbishments or structural changes, but the likelihood of completing required work in a short period is a factor they will consider.
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Exit strategy: You'll need to demonstrate a viable plan to sell the property (or refinance it) within a set timeframe to repay the loan plus any accrued interest.
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Loan term: Typically ranges from 6 to 18 months, with some lenders offering up to 24 months for large projects. However, various lenders work with different timeframes, and you need to balance the cost of the loan against the time you need to resell the property.
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Property type and location: Some lenders exclude certain property types (for example, ex-local authority flats or non-standard construction properties). Certain niche lenders only work with properties located in specific regions in the UK.
Applicant-specific criteria
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Deposit: Most lenders will require at least a 20% deposit, with some asking for more, depending on the property’s condition and the strength of your application.
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Experience: While first-time developers and property flippers can apply, more favourable terms are typically available to those with prior experience in property refurbishment or flipping.
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Credit history: A clean credit file can improve your chances of approval, but there are specialist lenders who consider borrowers with certain types of bad credit (depending on the age and severity).
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Affordability: Rather than income multiples, lenders focus on the strength of your exit strategy and the property’s projected resale value as an investment when calculating your affordability.
Compare buy-to-sell mortgage rates
Buy-to-sell mortgage products are usually offered by specialist lenders, and the rates can vary significantly depending on your experience, loan size, and the property’s condition. With our free mortgage comparison tool, you can get an idea of the latest buy-to-sell rates from across the UK.
However, our brokers can help provide more detail and context, helping you compare fixed-rate and rolled-up interest options, and explain how any fees (such as valuation, arrangement, or exit fees) might impact your returns. If you need extra support and guidance, it’s well worth speaking to an experienced broker.
If you’re comfortable researching rates yourself, we’ll do the heavy lifting. Use our free tool to calculate and compare the latest buy-to-sell mortgage rates instantly:
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Lender Details
Product Details
Buy-to-sell mortgage lenders in the UK
While most high street lenders don’t offer standard buy-to-sell mortgages, some may provide bridging or short-term investment loans under specific conditions. Here's what to expect from a few of the UK’s major lenders:
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Halifax: Doesn’t typically offer dedicated buy-to-sell mortgages, but may consider short-term loans for properties where the borrower plans to sell or refinance quickly, especially if the property is habitable. Halifax will review applications on a case-by-case basis, and you'll need a clear exit strategy.
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NatWest: Offers bridging finance through its commercial division for certain investment projects. However, NatWest will expect properties to be habitable and suitable for tenants or resale at the point of valuation. Applications and properties must meet a strict set of conditions.
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Nationwide: Generally doesn’t provide direct buy-to-sell mortgage products through its residential channels, but specialist finance might be available through a broker. Any possible financing from Nationwide will depend on your background, the property’s resale value, and exit strategy evidence.
Most mainstream lenders won’t support this niche area of lending. To find and compare all your options for a buy-to-sell mortgage, it’s best to speak with an experienced advisor who can introduce you to the most appropriate specialist lender.
Why choose Teito for your buy-to-sell mortgage?
Our brokers specialise in helping clients secure the right buy-to-sell mortgage or short-term financing for a property investment. Whether you're flipping your first property or managing multiple refurb projects, we can ensure your application is airtight and you can access the best rates available.
Because our brokers understand the complexity of short-term lending, they can help you avoid delays, rejected applications, or wasted valuations. Plus, our experienced advisors can advise on project timelines, exit strategies, and keeping costs down.
Here are some more reasons why property owners and investors choose us to help secure the best buy-to-sell mortgage:
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We specialise in short-term property finance and buy-to-sell mortgages
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Our advisors are 5-star rated on leading review sites
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We can introduce you to specialist lenders offering exclusive rates and deals
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Your first chat is free with no obligation to proceed
Ready to explore buy-to-sell mortgage options? You can compare rates above or speak with a skilled advisor here.
FAQs
If you have a standard mortgage, you'll repay the remaining balance in full using the sale proceeds, and anything left is yours (once any taxes or fees are taken care of) if you’re not planning to purchase another property.
With a buy-to-sell mortgage, the loan is also designed to be repaid upon sale of the property. You’re not obligated to buy another property, but you’ll need to ensure any exit fees or interest can be covered from the proceeds.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.