According to mortgage broker, My Mortgage Direct, over the last six months there has been an increase in the number of people who want to move up to a bigger property or change area but who dont want to sell in order to do so.
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Director of My Mortgage Direct, Cath Hearnden, said: A property bought three of four years ago is likely to be holding a sizeable chunk of equity which represents a golden egg people dont want to let that go.
With the relentless rise in property values, homeowners are being very careful about when they cash in their chips because when its gone, its gone = they know this kind of opportunity is a once in a lifetime chance to access a large sum of money and are waiting for the right moment.
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Hearnden said: Let-to-buy is a very useful way of keeping hold of the golden goose whilst moving home for family or work reasons.
A let-to-buy mortgage achieves the same as a buy-to-let deal by approaching it from the other direction. Let-to-buy allows homeowners to purchase a new home as well as keeping on an existing property as an investment which is let out to tenants, with the rent covering the mortgage.
This offers a huge advantage over a traditional mortgage which requires all previous mortgages are repaid when a new mortgage is taken.
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The limited number of lenders currently offering good let-to-buy deals include Northern Rock, Birmingham Midshires, Abbey and GMAC.
Another attraction of the let-to-buy option is that it breaks the traditional mould of the buyer/seller chain. If you have found your ideal next property but cant or dont want to sell your current home for whatever reason, let-to-buy is a way of getting the best of both worlds, Hearnden said.
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