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Most buy to let lenders prefer applicants who already own a home, but it is possible for a first time buyer to get a buy to let mortgage under certain circumstances.
While not especially common, there are lenders open to this type of application, provided you meet the right criteria and understand how the process works.
If you’re thinking about becoming a landlord before buying a home to live in, here’s what you need to know.
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Why Would a First Time Buyer Choose a Buy to Let Mortgage?
There are a few reasons why someone might want to buy a rental property before they own a residential one.
You could be living in tied accommodation through your job, such as with the armed forces or emergency services.
In other cases, you might still live at home with family and see property investment as a way to plan for the future.
It’s less common, but it does happen, and some lenders are willing to consider it if the circumstances are right.
Why Do Most Lenders Say No?
The main reason lenders hesitate with first time buyer buy to let applications is risk.
If you are not living in the property, and your tenant stops paying rent, there’s a concern you may not feel as motivated to keep up the mortgage repayments.
You’re not at risk of losing your home in the same way, which changes the dynamic. Lenders also have less information to work with.
If you’ve never had a mortgage before, they can’t see how you’ve managed one in the past.
They may instead need to base their decision solely on your income, credit history and current living situation, which can make the application process more detailed.
What Do You Need to Qualify?
While each lender has their own rules, here’s what typically makes a first time buyer buy to let application more viable:
- A strong income, usually £25,000 per year or more
- A deposit of at least 25%
- A clean credit history, showing you manage your money well
- A clear reason for buying to let instead of buying to live in
Some lenders may also assess your affordability based on your personal income, rather than just the expected rental income from the property.
This is an extra layer of caution to ensure the mortgage remains manageable even if rental income fluctuates.
Why You Can’t Use a Residential Mortgage Instead
Some people ask whether they can apply for a standard residential mortgage and then let the property out. The answer is no.
Residential and buy to let mortgages are priced differently based on how the property will be used.
Letting out a home that was bought with a residential mortgage and no permission from the lender can breach your mortgage terms and lead to serious consequences.
If your intention is to rent the property out from day one, it has to be a buy to let mortgage.
Can a First Time Buyer Have an Interest Only Buy to Let?
In most cases, yes. Buy to let mortgages are commonly interest only, and the same option is generally available to first time buyers who meet the lender’s criteria.
Because the property is intended to generate rental income, many landlords choose to pay interest only and manage the mortgage balance in a different way later, such as through sale or remortgaging.
Why Advice Matters in This Situation
Getting a buy to let mortgage as a first time buyer can be more complicated than a standard application. Not all lenders offer this, and those that do tend to apply stricter rules and ask more questions.
That’s why it helps to have a mortgage broker on your side. We can search the market for lenders who accept first time landlords, explain what paperwork you’ll need, and support you from start to finish.
Even though it’s a less common route, it might be exactly the right one for your long-term plans. And if that’s the case, we’re here to help you explore it properly.
