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  • FIRST POST
    • 24102017
    • By 24102017 13th Jan 18, 3:57 PM
    • 8Posts
    • 1Thanks
    24102017
    BTL mortgage - first time buyer
    • #1
    • 13th Jan 18, 3:57 PM
    BTL mortgage - first time buyer 13th Jan 18 at 3:57 PM
    Hello,

    Quick question.

    Are there any lenders willing and legally allowed to loan a BTL mortgage to a first time buyer?

    I want to invest my savings into propery (£100k) with a potential small BTL mortgage (up to £100k). I would like to get on the property ladder, but I dont want to settle with a residential mortgage. I work around the world and want flexibility. The idea is to hold it and then sell or live in it 10, 20 or 30 years from now. I would invest in a growing Northern city, not far from uniersities or places of work, a 2 or 3 bed property, and rent it by room.

    The option of a BTL mortgage expands my budget. I could buy with £100k cash, but the options are restricted. In this case, again, I would rent it out, probably by room, for the medium to long term.

    Thanks
Page 1
    • Thrugelmir
    • By Thrugelmir 13th Jan 18, 4:46 PM
    • 56,780 Posts
    • 50,152 Thanks
    Thrugelmir
    • #2
    • 13th Jan 18, 4:46 PM
    • #2
    • 13th Jan 18, 4:46 PM
    Are there any lenders willing and legally allowed to loan a BTL mortgage to a first time buyer?
    Originally posted by 24102017
    Nothing illegal in lending to a first time buyer. More a question of meeting the lenders criteria which encompasses their regulatory responsibilities.

    Majority of BTL lending is undertaken through mortgage brokers. To ascertain your options that's your starting point.

    As you intend to let the property on an HMO basis. I'd suggest you are prepared to provide a business plan. An absent landlord will add an additional cost of management as well.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • ACG
    • By ACG 13th Jan 18, 4:58 PM
    • 16,126 Posts
    • 8,305 Thanks
    ACG
    • #3
    • 13th Jan 18, 4:58 PM
    • #3
    • 13th Jan 18, 4:58 PM
    It can be done. I have a client who I did this for last year.
    You need to get the lender on board that you will not be residing in the property and working abroad should help with that.

    You will have limited options, but you shoudl still have decent rates open to you.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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