First Time Buyer Buy To Let

Reading Time: 3 minutes

July 25, 2020

Share This Article!

Can I get a Buy-to-Let Mortgage as a First Time Buyer?

The simple answer is yes you can, lenders are starting to accept First Time Buyer First Time Lanlords however you will be limited to a handful of lenders. That being said these lenders are quite good, we have worked with them for years and there processes are very similar to your normal high street lenders.

As with any Buy to Let, the amount you can borrow is determined by the rental income received and you should aim for a minimum deposit of 20% to secure a Buy to Let mortgage. You should also determine that you satisfy for the following critieria:

  • You want to invest in property
  • You understand the risks involved
  • You have a good credit rating
  • Your finances aren’t already too stretched with existing financial commitments
  • You earn £25,000 pa or more
  • You are under the age of 70
  • You have saved a significant deposit (minimum of 20%)
  • You can afford the additional fees associated with a buy to let property

Some people believe that arranging a Buy to Let mortgage is easier as your personal income is not taken into account, however this is not always the case especially for First Timer Buyers First Time Landlords – lenders see Buy to Lets riskier than Residential Mortgages and want to check that you are adhering to the rules set out by the lender such as making sure you are not living in the property at any point and that the rental income covers the mortgage payments by betwen 125-145%, this will help to cover any rental voids.

When running a Buy to Let property, it’s not as simple as just receiving the rent and paying the mortgage paymens every month, you should consider the costs for running a Buy to Let property including repairs and maintenance, landlord insurance and that you may get times where your tenants don’t pay – making sure if any of the above needs to be covered this does not stretch you.

You should also consider, as a First Time Buyer, that when you come to buy your first residential home, the schemes to help people buy their first residential property will not be available to you. This includes the First Time Buyer Stamp Duty relief when you do come to buy your first home.

If you feel like this is the right route for you get in touch today!

Want to stay in the loop?

Subscribe To Receive The Latest News

Only useful news and advice will be delivered to your inbox.

Check out how we respect your Privacy here.