Buy-to-Let Mortgage for First-Time Buyers

Do you have any age limits in place?

First-timer buyers may be relatively young compared to more experienced property investors. However, we do not limit our first-time buy-to-let mortgages to older landlords. Our buy-to-let mortgages for first-time buyers are available for those aged between 21 and 75+.

Do you place limits on the types of properties first-time buyers can invest in?

No, our buy-to-let mortgages for first-time buyers can be used for a broad range of property types. This includes relatively straight forward investments, such as student accommodation or houses, through to complex assets such as MUFBs to 30 units or short-term lets. However, we do require the use of a specialist letting agent.

Can I live in my buy-to-let property?

No, our first time buy-to-let mortgage can only be used for investment purposes. Meaning your tenants, not you or your close family members, will be living in the property you’re investing in.

How is my affordability calculated?

When purchasing a buy-to-let property with us, several different elements will be factored into the affordability calculations. At Market Financial Solutions, we like to look at a case in its entirety. This includes not only the rental income, but also the overall A&L, your accessible wealth, any surplus income and more. We do this to ensure agency fees, voids, maintenance, tax, ground rent and other associated costs can be comfortably covered.

Will the rates differ between first-time buyer buy-to-let mortgages and other mortgages?

Across our BTL mortgages, there are 4 applicable tiers. Tier 1 loans are for the most straightforward cases, whereas tier 4 mortgages are for particularly complex deals. To reflect the risk associated with lending to first-time buyers, we automatically place these new entrants to the market into our tier 2 loans at a minimum. Tier 3 mortgages are reserved for complex borrowers or properties, including: large structures, expats, foreign nationals, overseas companies and more.

How much deposit do I need?

For our first-time buyer buy-to-let mortgages, we lend up to 75% loan-to-value. Meaning the minimum deposit required will be 25%. Generally, those with larger deposits may face lower repayment costs.

What mortgage repayment options do you have 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, 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?

As every application we receive is assessed on its own merits, the paperwork needed will vary from person to person. The documents we request from you will likely depend on where you are on the property ladder, the asset itself, and several other factors. Your underwriter will be there from day 1 to explain what documents we require. At the front end, we will need to verify a form of ID, and will need the details of the property you wish to use our BTL mortgage for, so having those documents to hand will be beneficial.

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.

Are buy-to-let mortgages the only products you have available for first-time buyers?

No, our bridging products can also be used by first-time buyers. This includes among others our residential bridging loans, auction bridging loans, and permitted and light development finance.

Our buy-let-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.