What is Buy-to-Let?
Buy-to-Let was originally a joint initiative introduced by ARLA and the mortgage lenders. The scheme was designed to help private individuals invest in rental property without being penalised by mortgage surcharges or paying commercial rates of interest. Various lenders are prepared to offer between 75% and 85% of the purchase price, leaving the buyer responsible for the deposit. This can either be raised from savings or by releasing equity from existing property. Lampons Lettings can advise on this. 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 interest payment. Lampons has an in-depth knowledge of the local market. Working with our colleagues in sales, we can help clients choose property that is likely to be in demand and should perform well, both in terms of rental income and capital growth. Our in-house independent financial advisers can assist with any mortgage requirements.
