Peter Williams, the IMLA executive director, said the fact some people resort to the let-to-buy method, which involves funding a mortgage by letting a house out, is a sign of the problems many face trying to get on the housing ladder.
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He added: “There are a number of difficulties with let-to-buy in that it assumes an ongoing rental market. Although the prospect of rentals remain strong, that won’t be true in every single locality.”
In locations where this occurs a buyer would be unable to get the rental income required to meet the mortgage repayments.
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According to the Alan Boswell Group, let-to-buy does have the advantage of low deposits, usually between five and ten per cent of the value of the property, whereas buy-to-let deposits are around 15 per cent.
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