Platform say that the let-to-buy market is a growing one

Landlord Expert
By Landlord Expert March 8, 2012 13:40

Accidental landlords accounted for a fifth of Platform’s buy-to-let business between December and the end of January this year, reflecting uncertainty in the housing market.

Platform said that between from December and the end of January let-to-buy accounted for 20 per cent of buy-to-let applications.

It said the increase had been borne out by property website Rightmove, which said it research found that properties were on the market for more than 105 days before they were sold, compared to 80 days in April 2011.

Platform said let-to-buy mortgages allow the borrower to retain ownership of their current property and let it out to tenants, then take out a mortgage to buy a new property.

Lee Gladwell, business development director of Platform, said: “Uncertainty around the economy, employment and house prices is continuing to dampen demand for house purchases and this is driving demand from those choosing to rent rather than buy.

“Our experience shows that some of those that want to move and are unable to sell are choosing to become landlords and rent out their existing property, at least until the market improves.

“We launched our let-to-buy range following feedback from mortgage brokers who were telling us of demand from borrowers for these types of products.”

Platform offers buy-to-let and let-to-buy products to mortgage advisers. They include its Options range that has no early redemption fees, and cashback products.

Daniel Bailey, adviser for Derbyshire-based Middleton Finance, said: “We have seen an increase in the number of let-to-buy, and it has become a lot more common in the past six months with clients.”

He said some clients were in their late 40s or early 50s, looking to downsize and added that many were using their home to fund retirement plans.

Mr Bailey said: “Homeowners are also increasingly seeing their house as an asset that they can use as a tool for pension planning and feel they can realise that asset by letting it out rather than selling it in the current climate.”

Landlord Expert
By Landlord Expert March 8, 2012 13:40

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