Can First Time Buyers get a Buy to Let Mortgage?
Yes - First Time Buyers can get a Buy to Let Mortgage.
In a post Mortgage Market Review (MMR) world where affordability for residential mortgages are checked more thoroughly, mortgage lenders are under intense pressure by regulators to ensure Buy to Let is not abused as an avenue to finance.
Legitimate First Time Buyers looking get into buy to let are put into more scrutiny. The question put to mortgage lenders underwriters to establish is why are you not buying a home to live in instead?
The spotlight being on people living with there parents or rented accommodation themselves.
With such a compliance headache many mortgage lenders and brokers alike - have a tendency to have a criteria that simply says No with others want to establish the viability of your proposal.
Those that do abuse Buy to Let may be found to have committed mortgage fraud and in an interconnected world it is rather easy for a lender to catch the abusers.
You can not ask a mortgage lender if you can live in a Buy to Let property at a later date, this again due to the increased regulatory burden residential mortgages - it would therefore require refinance.
So what about Legitimate Buy to Let for First Time Buyers?
Talk to your Buy to Let Mortgage Broker
about your options. The number of lenders offering finance is limited and there scrutiny of your proposal will be high.
Mortgage Lenders will be asking more questions, lenders with no minimum income can be found to put one in place with others assessing affordability based on your income (instead of rent) to show they have been responsible.
This - being your first mortgage your credit worthiness will also be assessed to a greater scale. You have no experience of home-ownership, never-mind no experience of being a Landlord. Lenders will be looking to see if you have loans or credit cards and managed them well without issues.
Those first time buyers without a credit record wont be able to proceed.
First Time Buyers will not be able to obtain BTL Mortgages with low deposit, the inexperience in the sector will lead to mortgage lenders wanting to ensure you have enough equity in the property to give them confidence in repayment if they have to repossess the property.
The extra scrutiny on legitimacy will mean you being asked to sign extra decelerations and quizzed on the legitimacy. Those that are living in a partners home or living with a others that require your help for living - can have very good legitimate reasons for choosing BTL instead of Homeownership.
Can a 3rd Party homeowner help?
You can get on the Buy to Let Property ladder and remove the "First Time Buyer" label by investing with a 3rd party home-owner. Having another person on your application will give the lender more confidence in repayment.
Where do I start?
If you are a First Time Buyer wanting get into buy to let with limited lenders and tight criteria you need to talk to a Mortgage Broker for Landlords. Call Bespoke Finance on 08009202001 and disclose from the outset if you do not own a home or other property, the broker will be able to discuss options and assess the viability of your mortgage application to lenders.
You will also want to get your Credit File ensure you have a good record and work to improve your credit score with efforts such as lowering your debt to avaliable balance ratio and getting on the
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