First Time Buyer Buy to Let Mortgages

Yes, possible, however this will be harder than if you had clean credit.

As a first time buyer first time landlord you’ll have to undergo strict affordability and credit assessments by your new mortgage lender.

Popular forms of bad credit mortgages include mortgage advice with a ccj, defaults, missed payments, debt management plans or simply having a low score due to not having much credit before.

The buy-to-let market works in a different way to the residential market so there are no schemes or guarantor mortgage types available to help.

If you are concerned about your credit score, it’s always best to get an up to date copy of your credit report so your mortgage broker knows the facts.

With bad credit, knowing the dates the bad credit happened and also how much the bad debt was for and also whether it’s now settled or unsettled helps with criteria.  Also, the bigger your deposit the better here as it will help lower the risk of your mortgage lender and keep your monthly payments down.

No, if you plan to live in a property that you purchase, you will need a standard residential mortgage rather than a buy-to-let mortgage. This is because buy-to-let mortgages are specifically designed for the purpose of letting out the property to tenants, not for owner-occupiers.

Standard residential mortgages are designed for individuals who are purchasing a property to live in as their primary residence. It’s important to speak with a mortgage broker to understand the specific eligibility criteria and requirements for obtaining a buy-to-let or residential mortgage.

Renting out your residential property or living in your buy-to-let is against your mortgage terms and conditions.  It’s important to always communicate with your mortgage lender should your plans change in the future to avoid legal proceedings.

To read more about our first time buyer mortgages for residential properties.

To get a mortgage on an investment property, the criteria for a first time buyer buy-to-let mortgage can vary between lenders, but generally, the following factors are taken into consideration.

Firstly, lenders typically require a higher deposit for a buy-to-let mortgage than for a residential mortgage, with deposits ranging from 25% to 40% of the property’s value. The amount you can borrow is usually calculated on the rental income that the property is likely to generate.

Another consideration are some lenders will assess the affordability of the mortgage, which includes assessing the rental income potential of the property, as well as the borrower’s personal income and expenditure.

A good credit history is also important for obtaining a buy-to-let mortgage, as lenders will want to see evidence that the borrower has a good track record of managing credit.

It’s also worth noting that there are some lenders who do not focus on your personal income when it comes to taking out a buy-to-let mortgage, whereas others need you to be earning £25,000 pa or more.

If you are self-employed then it can be harder to get approved for a mortgage. We can help with all of your self-employed mortgages also.

It is possible for a first time buyer to have two mortgages, one for their own residential property and another for a buy-to-let property. However, there are some factors to consider when taking on multiple mortgages.

Taking on multiple mortgages means you will have additional financial responsibilities and will need to manage your finances carefully. This can include making mortgage repayments on time, managing rental income, and dealing with unexpected expenses related to the properties.

In addition, it’s important to provide adequate evidence to demonstrate that you have the means to make monthly mortgage payments for both properties, whether through personal earned income or rental income. This will be a key factor in obtaining approval for multiple mortgages.

Yes, it is possible to use the equity in your house as a deposit for a first time buyer buy-to-let property. However, there are several factors to consider before doing so.

One of these factor are you need to ensure that you have sufficient equity in your house to cover the deposit for the buy-to-let property. This may require a valuation of your property to determine its current value and the amount of equity you have available.

Assuming you have enough equity in your home and it’s possible to release it, you can use a remortgage to access that equity and use it as a deposit for a buy-to-let property. Keep in mind that a typical deposit for a buy-to-let property usually ranges between 20% to 40% of the property’s value.

Being a homeowner, it might be tempting to keep hold of your existing property as an investment, remortgage it onto a buy-to-let and then buy a new home with a mortgage to live in. This type of transaction is called a let to buy mortgage and is a common way for first time buyer landlords to get into investment.

A let to buy works well if you have had your property for a while and there’s a fair amount of equity in there to utilise.

As with normal buy-to-let remortgages, first time buyer buy-to-let mortgages works on bands so the more deposit you must put down the better interest rate you will qualify for.  Your mortgage advisor will talk you through the options with your new lender here to help you maximise your savings.

As a first time buyer landlord, it can be overwhelming to navigate the mortgage market and choose the right product. This is where a buy-to-let mortgage broker can be extremely helpful.

Working with a mortgage broker can provide you with valuable expertise in the buy-to-let mortgage market, which may be unfamiliar territory for a first-time buyer. They can guide you through the different mortgage products available, help you identify the ones that meet your specific needs, and recommend lenders that you may not have considered otherwise.

Additionally, going to a mortgage broker can search thousand of deals, so you don’t have to spend hours searching through different lenders’ websites and comparing products. We can also assist you in completing the application process and guide you through any documentation that needs to be provided.

In terms of potential cost savings, a mortgage broker may be able to help you secure a better deal than if you were to approach lenders directly. We can also attempt to negotiate on your behalf and help you save on fees and charges.

A mortgage broker will be able to consider the alternatives to a first time buyer buy-to-let mortgage also such as bridging finance, HMO mortgages and holiday let mortgages.

That’s why going to a mortgage broker as a first time buyer landlord can be a smart move. Utilising a mortgage broker expertise, can access to a wider range of mortgage products, and our ability to save you time and money can help make the buy-to-let mortgage process smoother and less stressful.