'Self-funding' buy-to-let mortgages make let-to-buy redundant

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Let-to-buy mortgages have been made redundant because lenders consider most buy-to-let products to be self-funding.

That is the assessment of Lee Grandin, director of Landlord Mortgages, who said that, at first, let-to-buy products were a good way for homeowners to buy a new property to live in while still keeping their old property to rent out on a buy-to-let mortgage.

However, now lenders say that buy-to-let mortgages are self-funding anyway.

This means that buyers "don't actually need a specific let-to-buy scheme", Mr Grandin said.

Research from Nationwide Building Society indicates that ten per cent of respondents own a second property in the UK, and a further 14 per cent would consider doing so. In fact, if all these people did own a second property, almost one in four folk in the UK would have a second home.

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