Finance

The secret of building a successful property portfolio and retiring on a guaranteed income for life is “Other Peoples’ Money”

Concept Property specialises in helping our members to purchase a property with as little of their own money as possible.

UK Buy-to-Let Mortgages

Investment property is purchased using an interest only buy-to-let mortgage; these usually have the following criteria.

Most mortgage lenders will lend you 85% - 70% of the purchase price of the property.
This means that you would need 15% to 30% of your own cash to purchase the property.
They will lend you this maximum amount if the rent meets a certain criteria.
The normal criteria is that the rent is 25% more than your mortgage payments, however this differs between lenders.
If the rent does not meet this criteria they will lend you a smaller amount.

Most buy-to-let mortgage products are based on the rent the property will achieve, however some will also take your income into consideration.

Overseas Mortgages

Our mortgage brokers are able to provide overseas mortgages and have special relationships with certain overseas banks.

Gifted Deposit Scheme

Our mortgage brokers are able to package the mortgage so that part or all of the discount can be used as your deposit. They also have access to exclusive mortgage products where the lending criteria is not based on the rent the property is likely to achieve.

This is a specialist area that most high street lenders, mortgage brokers and solicitors will be unfamiliar with.

Our Gifted Deposit Schemes reduce the amount of capital required to purchase a property which substantially increases your leverage enabling you to buy three times as many property with the same amount of money.

Find out how you can buy 3 properties for the price of 1

Exchange Bonds

Concept Property can often arrange for an Exchange Bond® to be used as an alternative to the 5% or 10% normally required by investors to put down on exchange of a UK off-plan purchase.

An Exchange Bond® is an "insurance policy" which guarantees the full deposit amount to the Seller if the Buyer fails to complete the purchase having exchanged contracts.

Purchasing an off-plan property in this manner means that your money is not tied up over the build period of your property and can be combined with our Gifted Deposit Scheme so that your discount and capital growth achieved over the build period form your deposit on completion.

Re-mortgage

Having already looked at the Property Facts section you will be aware that property prices in the UK double every 7-10 years.

Research shows that the average UK home is worth £200,000 and that most investors have at least £80,000 worth of equity in their home.

Most residential mortgages only require you to have a 10% deposit which means you could release £60,000 from your home to buy more property.

Using our gifted deposit scheme this would enable you to buy ten properties! If the properties were being purchased for £125,000 with a 15% gifted deposit you would have £250,000 worth of equity at the end of the first year and this is with a conservative growth rate of 5%.

Transferring equity from your home to purchase more property will not only help you to build a portfolio to provide you an income in retirement but it can also help you to pay off the mortgage on your own home more quickly helping you to have a better standard of living.