First Time Buyer Buy To Let Mortgages in UK 2024 Explained by Liam Ryan

If you’re new to property investment and do not own a property, you may be considering a first time buyer buy to let mortgage. But is it really the right move? Are there more lucrative options available? Read on for more… 

Why consider a first-time buyer buy-to-let mortgage? 

There is no doubt that buy to let can be a great investment strategy.  For first-time buyers who may not be able to afford properties in their local area e.g. London, buy to let mortgages can present an alternative route. This enables them to get on the property ladder by buying elsewhere and make extra income by renting out their property. Whether the end goal is to save up for their dream home or eventually use the buy to let as a retirement property, the returns can be substantial.  

Affordability   

Buy to let mortgages are generally considered higher risk by lenders as they tend to be more complex than residential mortgages. For this reason, first time buy to let mortgages usually require a higher deposit. Usually around 25% of the property value, and interest rates are typically higher.  

Best practises for investors  

First-time buyers will have lots to consider including landlord responsibilities, void periods, stamp duty and more. The key is to be well informed so that you can assess whether a buy to let property is the best option for you as a first-time buyer.  

Affordability checks on first time buyer buy to let mortgages tend to be more rigorous. Make sure that you have done your homework and your finances are in order before considering this option. We advise using free mortgage calculators that do not impact your credit score to assess affordability.  

It’s all worth noting that you can’t live in buy to let property as the mortgage is designed for landlords only. For a property to live in, you’ll need a residential mortgage.