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Approach let-to-buy 'with caution'

Let-to-buy must be "approached with caution", according to a spokesman for the Intermediary Mortgage Lenders Association (IMLA).A let-to-buy mortgage is designed to allow first time buyers to get onto the property market, by using the rental yield from their property to pay for their mortgage and get their feet on the first rung of the ladder.Peter Williams, executive director of the IMLA, said: "Somebody contemplating using let-to-buy needs to approach this very carefully," adding: "It's a legitimate strategy but one that needs to be approached with caution."He said: "Let-to-buy is more about people who don't own a property and who are using the rental market as a way of financing the purchase of a property. Then on the back of that, they enter the housing market as a home owner. Possible models include renting out a spare bedroom and living with tenants, or renting elsewhere or staying with family or friends, while renting out the whole property, Mr Williams suggested.

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