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Buy-to-Let for First Time Buyers

We can help first-time buyers invest in buy-to-let, there is a lot to consider for you. It may disqualify you from Government schemes such as Help to Buy and may result in higher SDLT if you later decide to buy a residential.

As a first-time buyer with no mortgage experience, options are low, and rates may be higher than homeowners.

Can First Time Buyers get a Buy to Let Mortgage?

Yes - First Time Buyers can get a Buy to Let Mortgage.

In a post Mortgage Market Review (MMR) world where affordability for residential mortgages are checked more thoroughly, mortgage lenders are under intense pressure by regulators to ensure Buy to Let is not abused as an avenue to finance.

Legitimate First Time Buyers looking to get into buy to let are put under more scrutiny. The question put to mortgage lenders underwriters to establish is why are you not buying a home to live in instead?

The spotlight is on people living with their parents or rented accommodation themselves.

With such a compliance headache many mortgage lenders and brokers alike - have a tendency to have criteria that simply say no with others who want to establish the viability of your proposal.

Those that do abuse Buy to Let may be found to have committed mortgage fraud and in an interconnected world, it is rather easy for a lender to catch the abusers.

You can not ask a mortgage lender if you can live in a Buy to Let property at a later date, this is again due to the increased regulatory burden of residential mortgages - it would therefore require to refinance.

So what about Legitimate Buy to Let for First Time Buyers?

Talk to your Buy to Let Mortgage Broker about your options. The number of lenders offering finance is limited and their scrutiny of your proposal will be high.

Mortgage Lenders will be asking more questions, lenders with no minimum income can be found to put one in place with others assessing affordability based on your income (instead of rent) to show they have been responsible.

This - being your first mortgage your creditworthiness will also be assessed to a greater scale. You have no experience of home-ownership, never-mind no experience of being a Landlord. Lenders will be looking to see if you have loans or credit cards and managed them well without issues.

Those first-time buyers without a credit record won't be able to proceed.

First Time Buyers will not be able to obtain BTL Mortgages with a low deposit, the inexperience in the sector will lead to mortgage lenders wanting to ensure you have enough equity in the property to give them confidence in repayment if they have to repossess the property.

The extra scrutiny on legitimacy will mean you being asked to sign extra decelerations and quizzed on the legitimacy. Those that are living in partners home or living with others that require your help for a living - can have very good legitimate reasons for choosing BTL instead of Homeownership.

Can a 3rd Party homeowner help?

You can get on the Buy to Let Property ladder and remove the "First Time Buyer" label by investing with a 3rd party home-owner. Having another person on your application will give the lender more confidence in repayment.

Where do I start?

If you are a First Time Buyer wanting to get into buy to let with limited lenders and tight criteria you need to talk to a Mortgage Broker for Landlords. Call Us on 08009202001 and disclose from the outset if you do not own a home or other property, the broker will be able to discuss options and assess the viability of your mortgage application to lenders.

You will also want to get your Credit File to ensure you have a good record and work to improve your credit score with efforts such as lowering your debt to available balance ratio and getting on the.

Get in touch

We are your online mortgage broker, offering you the convenience of applying for a mortgage online. However, we understand that sometimes you may prefer to speak with a human - phone, email or in person.

Phone number
01133 205 902
Postal address

31 Bradford Chamber Business Park,

New Lane, Bradford, BD4 8BX

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and / or
FCA Authorised

We are authorised and regulated by the Financial Conduct Authority (No. 919921). The FCA does not regulate most Buy to Let mortgages.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

British Company

Cyborg Finance Limited is registered in England and Wales (No. 12131863) at Bradford Chamber, New Lane, Bradford, BD4 8BX

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