What is a buy to let mortgage first time buyer?
Put simply, these solutions allow you to purchase your first house, which you will use for renting out to tenants. Therefore, they enable you to get on the property ladder, so they are valuable financial solutions.
Often people think you need lots of landlord experience or that you should own a residential property first, but this is not the case. Some specialist lenders are more than happy to provide financial solutions to you even though you have little or no property ownership experience at all. However, they can be harder to track down, which is where a buy to let broker like us can help.
Although there are options available, the criteria may be a bit stricter as lenders may see you as a higher financial risk. This may mean you need to get a larger deposit together or you may not get the best rates.
Despite this, you are still able to get the funding you need to achieve your investment goals.
We have access to a range of repayment and interest only mortgage products for first time buyers and first time landlords.
Our team sources products from lenders who take a more flexible approach, so you may have a good chance of getting accepted with us.
Why do first time buyers invest in property?
Investing in properties can be a really valuable way to generate some extra income, so many people choose to buy them for this purpose. In doing so, it can help you create a bigger savings pot for when you’re ready to buy your own house.
Another reason people look to these investments is so they can get on the property ladder. Often, people can find themselves in situations where they can’t afford a residential property in their area. Due to this, many people may look into getting rental houses in other cheaper locations, so they can start gaining some property experience.
Regardless of the reason, we may be able to help you get a mortgage for one of these properties, allowing you to achieve your goals.
What are the different property types you could get?
There are a range of different types of properties you can get, so the investment opportunities can be endless.
This includes:
- Holiday lets – Properties which are rented out to other people for holiday purposes.
- Standard houses and flats – A traditional house or flat.
- Houses of multiple occupancy (HMOs) - Houses that are rented out to a group of at least 3 or more unrelated tenants.
- Multi-unit freehold blocks (MUFBs) – Self-contained accommodation, which is held under a single title.
Our experts can assist with each of the property types above, meaning that you may be able to get the solutions you need to fund your plans.
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Call us for FREE on 0800 032 4646 or enquire using the form below.
Don't forget – making an enquiry will not affect your credit rating in any way!
Which lenders offer buy to let mortgages to first time buyers?
The risks of lending to a first time buyer can be greater, as they have no experience to show providers that they’re a reliable borrower. Therefore, the number of lenders available may be a bit more limited.
Despite this, there are still lenders who can assist in these circumstances. Our team have access to a diverse range of lenders who all have products that are suitable for first time buyers and first time landlords. Therefore, we may have a solution that fits your needs.
We also have buy to let solutions that suit experienced landlords who are looking to expand their existing property portfolio.
What documents might I need to provide to lenders?
With any mortgage application, you will need to supply documents to verify your identity and the amount of income you make.
Documents that may be needed include:
- Passport – Used to verify your identity.
- Banking statements – Lenders like to get the last 3 months’ worth of bank statements to assess your monthly spending habits and income.
- Payslips – Lenders will use this information to check your income is at the level you say. This will help to inform their decision-making on how much they should let you borrow.
What should I be aware of as a first time landlord?
Renting out a property for the first time can be daunting, particularly if you don’t know what to expect.
Here’s some key things you should be aware of as a first time landlord:
Maintenance
It’s important to be aware that there are costs involved with maintaining a rental property. Therefore, you need to make sure that you would be able to afford these, otherwise you could run into problems with your tenants.
Letting agents
If you’re renting out a property for the first time it may be worth using a letting agent to help you with locating potential tenants and ensuring that your rent is collected on time. Using a letting agent will however involve fees, so it’s worth factoring these in.
Void periods
There can be times when your rental property is completely vacant, so you will not be making any income. In this situation, it’s important that you have back-up funds to make sure you can still meet your mortgage payments. Otherwise, you could run into problems with your lender, which could put your property at risk.
How to get a first time buyer buy to let?
Getting a buy to let mortgage for the first time can be easier than you might think. Follow our steps below and see for yourself:
- Contact our experienced advisors to make an enquiry by calling them on 0800 032 3535 or by using our online form above.
- We will search our range of products to find the most suitable and affordable solution for you. If successful, we will be in touch to talk it all through with you.
- The choice is yours, you decide if the product is right for you and your plans. If it is, our advisors will take you through the next steps of the process, so you can get your funds.
