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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.
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Although uncommon, some first time buyers may consider a buy-to-let property as an investment. This can apply to young buyers living with family or those living with a partner but not named on their partner’s mortgage.
With years of experience, we’ve helped clients navigate unique first time buyer buy-to-let scenarios, which often require extra care due to higher risk for lenders.
Our expert mortgage advisors will assess your financial situation and investment goals, offering personalised advice based on your income, credit history, deposit, and rental potential.
Whether you’re a young buyer or living with a partner, we’ll guide you through the process, ensuring you find the best option for your needs.
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Though rare, first time buyers may consider buy-to-let as an investment option. This could apply to young buyers living with family or those living with a partner but not named on their partner’s mortgage.
Our mortgage brokers have extensive experience in handling first time buyer buy-to-let cases, which often require extra care due to higher perceived risk by lenders.
Our expert mortgage advisors will assess your financial situation and investment goals, offering tailored advice based on factors like income, credit history, deposit, and rental potential.
Whether you’re a young buyer or living with a partner, we’ll guide you through the process, ensuring you find the best option for your needs.
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Great company to work with, very helpful and excellent communication. Chris and Jo did a great job with our application. I highly recommend.
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More on First Time Buyer Buy to Let
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.
We strive to accommodate your personal and work schedules, making sure that we are available at a time that is convenient for you.
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.
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.
We understand the unique challenges faced by first time landlords and are here to offer our guidance and support throughout the entire process.
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.
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.
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.
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.
When entering the buy-to-let market, selecting the right location is vital.
Areas with high rental demand, such as those near universities, city centres, or commuter-friendly neighbourhoods, often attract reliable tenants and consistent rental income.
It’s essential to calculate the property’s rental yield, which is the annual rental income as a percentage of the purchase price.
A high yield generally signals a strong investment, especially when you consider long-term growth.
Rental demand can vary, so researching market trends, vacancy rates, and average rent prices in your chosen area helps ensure that the property will perform well over time.
Buy-to-let mortgages for first-time buyers have unique requirements that may differ from those for standard residential buyers.
Lenders typically require a higher deposit, often around 25% of the property value, to mitigate risk.
Additionally, interest rates on buy-to-let mortgages tend to be higher than those for residential properties.
Some lenders may also have stricter lending criteria, including higher minimum income requirements, and not all lenders offer buy-to-let products to first-time buyers.
Being prepared for these financial demands is essential, as the availability of lower deposit products can be limited.
A mortgage broker can often help in finding options tailored to first-time buy-to-let investors.
Taxation is an important part of property investment that all first-time landlords need to understand. Rental income is typically subject to income tax, and landlords must report this income to HMRC.
There may also be additional taxes when selling the property, such as capital gains tax.
Expenses such as letting agent fees, property repairs, and mortgage interest can often be deducted from rental income to reduce the taxable amount.
Staying aware of your tax obligations as a landlord not only helps you budget effectively but also ensures compliance with regulations, avoiding potential penalties.
Speaking with a tax advisor is highly recommended to help you understand this aspect of being a landlord.
Owning a buy-to-let property means taking on all responsibilities for its upkeep, which can be costly.
Beyond mortgage payments, landlords need to budget for repairs, general maintenance, and occasional emergency fixes that arise.
Many landlords choose to manage the property themselves to save costs, but this can be time-consuming.
Hiring a letting agent can relieve the pressure of day-to-day management, although they typically charge a monthly fee that reduces your profit margin.
Planning for both routine maintenance and unexpected costs ensures that you’re financially prepared to keep the property in good shape for tenants.
Attracting reliable tenants is critical to maintaining steady rental income.
First-time landlords should assess tenant demand in their chosen area, as regions with high demand tend to experience fewer vacancy periods.
It’s also essential to establish a thorough tenant screening process, which helps identify responsible tenants who are likely to pay on time and take care of the property.
Reviewing references, conducting background checks, and confirming employment details can help you avoid the risk of unpaid rent or property damage.
By carefully screening tenants, you’re more likely to maintain a positive rental experience from the outset.
When assessing a buy-to-let properties profitability, lenders typically require rental income to cover at least 125-145% of the monthly mortgage payments.
Known as rental stress testing, this standard ensures that your rental income comfortably supports the mortgage even if interest rates increase.
Conducting thorough market research on local rental prices and occupancy rates gives you a clearer picture of whether the property can meet these requirements.
Additionally, understanding that lenders may stress-test at higher interest rates for future-proofing means you’ll want to choose a property with realistic income potential to maintain financial stability.
Becoming a landlord means adhering to a set of legal and regulatory standards designed to protect tenants.
Responsibilities include ensuring the property is safe, performing regular gas and electrical safety checks, and securing deposits in a government-approved scheme.
In some cases, landlords must also obtain a licence from the local council, especially for houses in multiple occupation (HMOs).
Failure to meet these legal obligations can result in penalties and even restrictions on letting out your property.
Familiarising yourself with landlord regulations is essential, as it allows you to keep tenants safe, maintain property standards, and avoid any compliance issues.
Unlike stocks or bonds, property investment generally requires a long-term commitment to realise significant returns.
Property prices and rental values can fluctuate based on market conditions, so viewing your buy-to-let as a long-term venture rather than a quick profit scheme often leads to more successful outcomes.
It may take several years for your property to appreciate in value and for rental income to cover initial expenses.
By adopting a long-term perspective, you can weather short-term market changes and potentially achieve better growth over time, enhancing your investment’s value.
There may be times when your property is unoccupied, resulting in a temporary loss of rental income. These void periods can impact your cash flow, particularly if they last for an extended period.
Setting aside an emergency fund that can cover mortgage payments, bills, and maintenance costs during vacancies helps you stay financially secure.
It’s also worth considering whether you have adequate savings to cover repairs or unexpected issues, as tenants may report maintenance problems that require immediate attention.
Planning for these expenses minimises stress and enables you to keep your property in good condition for future tenants.
The buy-to-let market is subject to changes in economic policy, lending rates, and local demand, all of which impact property values and rental potential.
Staying informed on market trends, interest rate changes, and new regulations affecting landlords allows you to make well-informed decisions as a first-time investor.
For instance, policy changes in areas such as landlord taxes, mortgage interest relief, or tenant protections could affect your investment returns.
Being aware of these factors helps you adapt your strategy and manage your property more effectively, allowing you to remain resilient in an evolving market.
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UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk.
© UK Moneyman Limited 2025.
UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk.
© UK Moneyman Limited 2025.
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