First Time Buyer Buy To Let

First Time Buyer Buy To Let

How can a first time buyer get a buy to let?

This is a question that we get asked a lot as mortgage advisors. A first time buyer buy to let isn’t massively common but with the promised income from letting, it makes buyers more keen. Property is considered the holy grail of investment so can you blame everyone and their dog for wanting to get into it? You can’t.

But when it comes to first time buyers can they get a buy to let without an existing property?…

The long and short of it is, yes you can. That’s the shortened version, let’s go into more detail below and how it all works.

Considering a buy to let purchase with no property in the background

The main issue with lending in this sector is not having a residential property in the background. Without your own residential (with or without mortgage) lenders see you as a higher risk. Mainly because you have no equity in the background or stability. This impacts negatively on their risk profile which is why only a limited amount of lenders will lend to anyone without their own residential property. This is regardless of whether you are a first time buyer or not.

Does this mean that no one will lend? No, there are lenders who will do it but you are already limiting your options. The key in this scenario is the right advice on what to do next. Often it can be difficult to understand the many lenders available to the market. This is where the right mortgage advice comes in handy. We provide a whole of market advice process meaning we have access to all lenders on the marketplace and can advise you properly.

Why not a first time buyer residential as opposed to buy to let?

This is often the conversation we have with first time buyers looking at a buy to let. It is much much much easier to get a buy to let if you have your own residential in the background. Lenders aren’t too worried about first time landlords when they have a residential in place. This gives them proof that you can be trusted with property.

If you have a property in place first that really opens up your lending opportunities. You go from a handful of lenders to every one on the market. Even if you aren’t first time buyers and don’t have a residential in the background this process can also be difficult. We highly recommend owning your own property before looking at a buy to let property. You also have to look at the fact that most buy to let products require a 25% deposit whereas you can get residential mortgages for 10% deposit. Meaning there is less money needing to be put down initially for a residential purchase. So really it’s a no brainer to get a residential one first.

How our first time buyer buy to let process would work

We start with an initial discussion over the phone or in person to go over your mortgage needs and goals. Once we have that we can give you an initial idea on what you could do and how you could proceed. At that stage if something isn’t suitable for you we will let you know and what you need to do going forward to be mortgage qualified.

If we believe you have the financials to back up your requirements we will then ask you to fill out a full financial fact find. This will give us the information we need to go and get you applicable quotes so you can see what you would be able to borrow mortgage wise. We partner these quotes with our client agreement which goes over our fees for the service.

If you are happy with the package that we have provided for your first time buyer buy to let then we sign the client agreement and look to get a full application done for you on your behalf. This requires document gathering at this stage. Lenders will want to see proof of income, deposit, ID, bank statements. All of this is fairly straightforward and we gather it and submit the application on your behalf. The lender then looks over all of this along with a valuation of the property in question and provides their assessment. If all is good we get a mortgage offer and you then move onto the legal part of the process. The mortgage offer signals the end of our service but we don’t stop our care there…

Post mortgage aftercare

Even though we have completed our advice process, our duty of care doesn’t stop there. We like to think that once we have done business with a client that we can help with all areas of their finances. From life insurance through to pensions and investments and everything in between. We don’t just do mortgages. We do fully fledged, holistic financial advice.

With over 30 years experience in the industry collated in our office you are in good hands. Why go somewhere else when we can take care of all your needs? Contact us today with your requirements and we will have an informal discussion with you.

As a firm we are based in East Grinstead, West Sussex. But we advise clients all over the UK and even abroad. With mostly a focus on the home counties, most prominently Sussex & Surrey we like to meet clients at our friendly home office for a more real experience than a phone conversation.

Get in touch today and we will be happy to advise you.

Regulatory Statements

Equity Release

Equity Release plans are not right for everyone. It is important that you fully consider your options and receive independent financial advice before making a decision. It is also important that, if you do decide to use an equity release product, you choose one that meets your needs.

Remember that taking an equity release plan is generally a long term option. However, there are flexible plans available that may fit your varying needs. Some will allow you to repay in the future without penalties.

Buy to Let Mortgages

Some Buy to Let Mortgages are not regulated by the FCA.



True Advice Financial Services is a trading style of TA and SE Hollom Ltd. Which is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority : Number 460421.

Registered Office : New Leaf Distribution Limited, 165 – 167 High Street, Rayleigh, Essex, SS6 7QA