Buy to Let Mortgages for First Time Buyers
First Time Buyer Buy to Let Mortgage Service
Looking to purchase a property for buy to let and need finance. Let our friendly mortgage team take the strain - we offer:
A whole of market service - we work with over 70 UK lenders
Access to leading market rates for first time buyers
Access to exclusive loan deals not available on the high street
Fast turnaround - speak to us today if you need to move quickly
Flexible lenders - we have lenders who will take into account previous defaults and missed payments
To investigate your 1st time buyer buy to let mortgage options, call our mortgage team or fill in our call back form.
The essence of the Fair Mortgages service is professional, independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support.
As your mortgage is such an important transaction, good advice is imperative.
If you want to buy a property with the intention of renting it out, you will require a specialist mortgage, known as a buy to let mortgage.
Buying a property to rent out can offer the opportunity to benefit from capital growth on the value of the property, as well as income from rent payments. However, getting a good deal as a first time buyer in the buy to let mortgage market can be challenging.
Getting a buy to let mortgage as a first time buyer
Lending criteria has become more stringent since the beginning of 2017, with banks and building societies now obliged to look closely at your spending and ensure that you are able to meet repayments even after a ‘stress test’ on your projected future finances.
One of the key areas of difference between a buy to let mortgage and a mortgage on your home is how affordability is assessed. The lenders' stress test will require you to be able to afford mortgage repayments even in the event that interest increases to 5.5%.
Because buy to let mortgages are often dependent on rental income to help fund repayments, lenders may consider you even more of a risk and charge higher interest rates or even refuse finance.
One of the main things a buy to let mortgage lender will consider is how much rent you are likely to be able to charge on the property you intend to purchase.
As well as proving your income, as is required when applying for a first time buyer residential mortgage, a buy to let mortgage lender will expect you to demonstrate that the market rate for rental income on the property you want to buy is at least 145% of the mortgage repayments.
Find the right buy to let mortgage
If you’ve never owned a buy to let property before it can be tricky to know where to start. However, many lenders are now offering more attractive deals to first time landlords looking to buy to let.
Some lenders are offering buy to let mortgages for first time buyers at up to 80% loan to value (LTV), which could pave the way for those who want to get a mortgage for an investment property but have not held one before.
Use our buy to let mortgage calculator, below, to compare some of the latest rates from top lenders and see if there's one that suits your needs.
If you need specialist advice on getting a first time buyer buy to let mortgage, give us a call on 0117 403 4474 and speak to our dedicated mortgage team, who will be able to help you locate the best deal for your circumstances.