Purely scheme offers guaranteed rental yields

Purely Mortgages and Wyndham York have joined forces to launch a buy-to-let scheme that guarantees a 5% three-year rental yield.

Purely has launched the initiative, Purely Property Investment, with Wyndham to minimise risk for landlords and help them snap up bargain properties in a weakening market.

Under the deal, Purely will source the most competitive three-year fixed rate deals available for landlords.

Wyndham, a company that lets and manages investment properties, will find suitable targets for investors priced between £200,000 and £300,000, which it will subsequently manage for them.

It charges a 10% letting fee for managing property.

Paul Munford, chairman of Purely Mortgages, which his firm Mortgage Centre IFA bought in December, says Wyndham is able to do this due to its 98% occupancy record.

He adds: “Only 2% of its properties are vacant so it has the cash flow to cover any shortfall.” Munford says the scheme will not consider off-plan and new-build deals.

Jonathan Moore, sales and marketing director at buy-to-let broker Mortgages for Business, says: “Guaranteed rental yields are great and likely to encourage investors.”

But he adds he would encourage potential landlords to undertake their own research into local properties.