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Can I become a landlord if I'm not an existing homeowner?

While it’s true that most buy to let lenders typically require new customers to already own a property, it is still possible to obtain a first-time buyer buy to let mortgage under certain circumstances. 

It’s important to note that buy to let mortgages are generally seen as a riskier investment than traditional residential mortgages. Therefore, lenders will be more cautious and selective when considering applications for first time buyer buy to let mortgages. 

To qualify for this type of mortgage, you will typically need to have a good income of at least £25,000 per year and a minimum deposit of 25% of the property’s value. In addition, lenders will scrutinise your credit history and overall financial situation to assess whether you can afford the mortgage payments and associated costs such as property maintenance and management fees. 

If you are a first time buyer looking to invest in a buy to let property, it’s important to speak with an experienced mortgage advisor who can guide you through the application process and help you find a suitable lender that meets your needs. 

The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.

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It may be possible for a first time buyer to become a landlord with their first property.

Although it’s not very common, there are situations where first-time buyers may want to pursue a buy-to-let property as an investment option. For instance, if the applicant is young and wants to continue living in their family home, or if they live with a partner but are not named on their partner’s mortgage, a first-time buyer buy-to-let scenario may be a viable option. 

At our company, we have years of experience working as mortgage broker and have assisted clients in a range of unique first-time buyer buy to let scenarios. We understand that these types of applications require specialized attention and care, as they are often seen as a higher risk for lenders. 

Our team of expert mortgage advisors will work closely with you to understand your financial situation and investment goals. We will offer personalised advice on the best course of action, considering all relevant factors such as your income, credit history, deposit size, and the property’s rental potential. 

Whether you are a young applicant looking to invest in a buy to let property, or you are living with a partner and want to explore a first-time buyer buy to let scenario, we can guide you through the entire process. Our aim is to provide you with the most suitable options that meet your specific needs and enable you to make an informed investment decision. 

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First Time Buyer Buy to Let FAQs

Can a first time buyer purchase a buy to let?

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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. 

There are also more hoops to jump through as first time buyer buy to let as you’ll need to assessed by your lender similar to a residential mortgage application when it comes to income and affordability.   

It’s important as a first time landlord to know your figures, maybe start with a spreadsheet and calculate all of the costs involved to see if the investment is viable.  Becoming a landlord is a big responsibility and any fines and wrong decisions can be costly for mistakes.

Can I get a first time buyer buy to let mortgage with bad credit?

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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.    

Can I live in my buy to let?

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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.  

What is the criteria for a first time buyer buy to let mortgage?

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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.  

Can I have two mortgages?

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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. 

Can I use the equity in my house for a first time buyer buy to let deposit?

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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. 

Can I rent out your existing property and purchase a new one to live in?

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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.

Why choose a mortgage broker?

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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. 

8 Reasons to choose UK Moneyman

Mortgage advice 7 days a week, mornings and evenings.

At UK Moneyman, we understand that your time is valuable, which is why we offer flexibility in scheduling appointments.

We strive to accommodate your personal and work schedules, making sure that we are available at a time that is convenient for you.

Whether you prefer to schedule appointments during normal business hours or require evening or weekend availability, our team is committed to finding a time that works for you.

We believe that personalised service is key to our clients' satisfaction, and we work hard to ensure that we meet your needs in a way that is convenient and stress-free.

Our mortgage appointments are free to all.

Our business model is designed to be customer-centric, and as such, we only get paid when we find you a suitable mortgage.

We understand that securing a mortgage can be a stressful and time-consuming process, which is why we offer a free mortgage appointment, which helps us successfully match you with a mortgage product that meets your needs.

This approach ensures that we are fully committed to achieving the best possible outcome for you, and we will continue to provide support and guidance throughout the entire process until we find the right mortgage for you.

You will benefit from having your own dedicated case manager.

We prioritise building strong relationships with our customers by providing personalised service that is both friendly and professional.

When you work with us, you can expect a sense of familiarity as you will be assigned a dedicated mortgage advisor who will guide you through the entire process from start to finish.

Our team of expert advisors understands that securing a mortgage can be a complex and overwhelming experience.

That is why we believe that having a single point of contact, who is familiar with your unique circumstances and requirements, is essential to providing a stress-free and seamless experience.

Your dedicated mortgage advisor will be available to answer any questions or concerns you may have throughout the process, keeping you informed at every step of the way.

We work for our customers, and will always do right by you.

For those who have never owned a home before, becoming a landlord can seem like a daunting prospect.

We understand the unique challenges faced by first time landlords and are here to offer our guidance and support throughout the entire process.

Our team of experienced mortgage advisors specialises in helping first time landlords navigate the complex world of property ownership.

From securing your first buy to let mortgage to finding the right tenants, we are committed to providing the resources and expertise you need to succeed.

We believe that by working closely with you, we can help you overcome any obstacles and achieve your goals as a first time landlord.

Our team will provide jargon free insurance advice.

We understand that protecting yourself and your loved ones is a top priority. That's why we offer a range of insurance products to help you safeguard your financial future.

Our team of experienced advisors will take the time to understand your personal and financial situation to ensure we find the most appropriate insurance product for your unique needs.

Whether you are looking for life insurance, critical illness cover, or income protection, we are here to guide you through the process and help you make an informed decision.

We believe that providing personalised service is key to helping our clients achieve their goals

1000s of possible buy to let deals for you.

Finding the right mortgage deal is essential to achieving your goals. That's why we work with a panel of top lenders to help you find the most suitable deal for your circumstances.

Our experienced mortgage advisors will take the time to understand your specific needs and goals, and search through a wide range of mortgage products to find the lowest rates available.

We believe in providing our clients with a personalised service, which means we take into account your individual financial situation and future plans.

Whether you're a first time buyer, looking for a buy to let mortgage, we are here to help you achieve your goals and secure the best deal possible.

We are well informed with the buy to let market.

Having years of experience dealing with a wide range of buy to let mortgage scenarios. This means that we are confident in our ability to help you, no matter your unique needs and circumstances.

We understand that everyone's situation is different, which is why we provide personalised buy to let advice and support to help you find the right buy to let mortgage deal.

Our team of expert mortgage advisors will take the time to fully understand your needs and financial situation, and will work with you to find the most suitable mortgage solution.

Your mortgage advisor will be with you every step of the way.

The property-buying process can sometimes involve unexpected challenges.

That's why our team of expert advisors is dedicated to providing you with comprehensive support that helps you navigate any potential hurdles that may arise during the mortgage process.

With our knowledge, expertise, and commitment to excellence, we are confident that we can help you secure the best mortgage deal possible, no matter what challenges you may encounter along the way.

We search 1000s of first time buyer buy to let mortgage deals

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UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

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