First Time Buyer Buy to Let Mortgages

Yes, it is possible for a first time buyer to become a buy to let landlord. However, obtaining a buy to let mortgage as a first time buyer can sometimes be more challenging compared to a first time buyer applying for a standard residential mortgage.

It is worth noting that most lenders prefer applicants with experience in managing rental properties or with existing property ownership. This is because owning a property and managing tenants demonstrate that the applicant has a certain level of financial responsibility and experience in the housing market.

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.

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.

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.

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

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.