Buy-to-Let Mortgage for First-Time Buyers

Do you accept first-time landlords using a company structure?

Yes. We can consider applications from individuals as well as corporate structures (including SPVs and offshore companies), subject to due diligence and our lending parameters. The key is that the case supports a sensible strategy and remains affordable under our assessment.

What term lengths are available?

This product is available for terms of up to 10 years. There is no early redemption charge after the initial term of 2 or 3 years, which gives borrowers more flexibility if their plans change later on.

Is there an age limit for first-time buyer buy-to-let mortgages?

First-time buyers may be relatively young compared to more experienced property investors. We consider applicants from age 21 up to 75, subject to affordability, term length, and the overall case profile.

How much deposit do I need for a first-time buyer buy-to-let mortgage?

We lend up to 75% loan-to-value (LTV) on this product. This means the minimum deposit is typically 25% or more. A stronger overall profile (including affordability and case strength) can support the application, and a larger deposit may reduce overall borrowing requirements.

How do you calculate affordability on a buy-to-let mortgage for first-time buyers?

We assess affordability using the rental proposition and the overall strength of the case. This can include rental income and wider financial factors such as accessible resources and surplus income, to ensure costs like letting agent fees, void periods, maintenance, tax and other ongoing property costs can be comfortably managed.

What types of buy-to-let properties will you consider for first-time buyers?

We can consider a broad range of buy-to-let property types, from more straightforward investments through to complex assets. This can include HMOs, student accommodation or houses, MUFBs (up to 30 units) and short-term/holiday-lets. However, we do require the use of a specialist letting agent.

Can I live in the property if I take a buy-to-let mortgage as a first-time buyer?

No, our first time buy-to-let mortgage can only be used for investment purposes. Meaning that the property must be let to tenants – it cannot be used as a residence by you or your close family members.

What mortgage repayment options are available?

We have several repayment options available for our buy-to-let mortgages for first-time buyers, including interest-only repayments via a monthly direct debit from a UK account. Additionally, on the Buy-to-Let Specialist range, you may be able to roll-up between 1 to 9 months of payments.

We can support your affordability concerns through our repayment flexibility. You could defer up to 2% interest until redemption to boost your residential mortgage size where needed. We also have top slicing options available, which can factor in earnings outside of your rental income. Our underwriters have flexibility and multiple tools at their disposal to boost the loan size for your rental property.

What documents will I need to apply?

Document requirements vary by case, but it helps to have your ID ready and the property details available at enquiry stage. Once your enquiry is submitted, we’ll confirm what else is needed based on the borrower profile, the asset, and the intended letting strategy.

Do I need a mortgage advisor?

While we can work directly with borrowers and brokers, it will be up to you to determine if you need the support of a mortgage advisor, or any other financial expert. Mortgage advisors, as well as brokers, can help you better understand your options, and potentially find better deals.

But, they will levy charges for their services. If you determine these costs don’t fit in with your budget, you may be able to utilise external tools yourself to aid your decision making. This could include a stamp duty calculator, free online guidance, or other tools. It will be up to you to decide whether or not to utilise a mortgage broker.

Do you offer other finance options for first-time buyers?

Yes. If a buy-to-let mortgage isn’t the right fit for the timing or property, we may also be able to support first-time buyers through other specialist products such as bridging finance (subject to the specific scenario). An underwriter can give you more information based on your personal circumstances.

Our BTL mortgages are available to first-time buyers as well as seasoned portfolio investors. Buy-to-let mortgages for first-time buyers may be hard to come by on the high street due to perceived risk or being seen as complicated investments. But, we’re happy to work with new entrants to the landlord market, as well as experienced investors. So long as your property investment plan is sound, and you have a solid exit strategy at the ready, we should be able to support you in becoming a landlord in England or Wales.