Let-to-buy mortgages 'to be popular next year'

News Category: Industry News

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Let-to-buy mortgages are likely to be popular in next year's "slow-moving" market, according to Heidi Nuttall of the financial services company Alan Boswell Group.

These products allow homeowners to buy a new property to live in, while keeping their old house on a buy-to-let mortgage which is paid off by the rental income. They do not penalise borrowers for having an existing buy-to-let arrangement because this is seen as self-financing.

"Let-to-buy is attractive as it removes the need to sell before buying," Ms Nuttall said. "It becomes attractive in times when the market is slow moving and I think it will become increasingly popular over the next year."

Research appears to indicate that house prices will soften next year, with the Royal Institution of Chartered Surveyors (Rics) reporting their fourth successive month of house price falls in November.

Lastmonth 40.6 per cent more surveyors reported a fall than a rise in house prices.

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