Buy-to-let

Property has consistently shown to be a wise investment in the medium and long term. When the market is strong, significant returns can be almost immediate and even when the pace is less vigorous, growth in excess of 20% per annum can often be achieved on the capital sum.

Buy-to-Let was a joint initiative by the Association of Residential Letting Agents (ARLA) and the mortgage lenders. The scheme is designed to help private individuals invest in property to let without being penalised by mortgage surcharges or paying commercial rates of interest.

Buy-to-let FAQ's

Will I still be able to keep the mortgage I have on my own home?

Yes, of course, the mortgage for your Buy-to-Let property will be completely separate.

How much can I borrow with Buy-to-Let?

Various lenders are prepared to offer between 75% and 85% of the purchase price. The mortgage company will need to know how much rent you expect to get from the property — this has to be 130% of the monthly mortgage payment.

How much deposit will I need to put down?

Most lenders expect buyers to raise a deposit of 25% of the purchase price, although some will accept less. In certain circumstances this can be reduced to just 15%.

What sort of property should I buy?

One that will perform well for you in terms of both rental income and capital growth. Your local office of Lampons will advise you of the type of rental properties that are most in demand in the area where you want to buy.

What sort of financial return can I expect?

By selecting property shrewdly under Lampons' guidance many of our landlords have seen combined income and capital growth giving a return in excess of 20% per annum.

Can I have more than one Buy-to-Let mortgage?

Yes. Many landlords use Buy-to-Let mortgages to buy a whole portfolio of properties.

How can I be sure I'll have tenants who'll always pay the rent?

Lampons' tenants are all fully referenced, but because even the most dependable people can encounter difficult times, we recommend landlords take out insurance to safeguard their rental income. Lampons offers probably the best guaranteed rent protection schemes on the market today. They're competitively priced and bring total peace-of-mind.

To find out more about how Lampons can help you enjoy the benefits of the Buy-to-Let scheme, contact your nearest branch.