With recent Base Rate rises affecting house price growth, and more people turning to property as a way to supplement their pension, My Mortgage Direct indicated that let-to-buy mortgages were being used to free up funds, as an alternative to selling their original property.
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Cath Hearnden, director at my Mortgage Direct, admitted that the let-to-buy market had experienced growth during recent months.
She said: “Over the past six months we have seen an increase in the number of people who want to move up to a bigger property or change area but who don’t want to sell in order to do so.
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“Let-to-buy is a very useful way of keeping hold of the golden goose while moving home for family or work reasons.”
Peter O’ Donovan, mortgage manager at Bestinvest, said: “More people are attached to their first house and holding onto their first property by dipping their toes into the buy-to-let market. It is a good idea and there has been definite growth in the market, but many people underestimate the costs involved and don’t research the market properly.”
