First Time Buyer allowed to let?

LeannePete2011

Hi

Sorry if this has been asked before. I have had a look for the answer but I am still unsure.

My Husband and I currently rent. We would like to buy a house to let out. Neither of us has owned a property before.

Can I get a first time buyer mortgage or does it have to be Buy to let when letting a property even though it is your first purchase?

We don't want to live in it as we love the house we are currently renting and the rent is very reasonable.

I have about 27% deposit of the loan amount.

Thanks for any advice

Leanne

x

kingstreet

It's a BTL product, for a purchase you intend to let.

Not owning a property in which you reside will be a problem for many lenders. A broker would be the best place to establish who will lend to you.

Your FTB status is not relevant to this, you only get a residential mortgage on FTB terms and you do not need one, as you will not live in the property.

LeannePete2011

Thanks

I'm a but clueless here. Please could you tell me how this works. If we get accepted on a BTL mortgage. We have that for two years and it expires. Do we then have to find a different BTL one and pay the for example the £2000 fees again?

Thrugelmir

The mortgage doesn't expire. The product does. At the end of the 2 year period the interest rate will normally revert to the lenders SVR . With BTL products this is often a considerably higher rate of interest.
To lock into another product would require the payment of another fee.

LeannePete2011

Thanks

I am intending to let to my nana. Who will have to have help towards the rent from the government, so I guess I definately will need a buy to let, even if I intend to live there eventually.

GMS

Letting to family makes it a regulated BTL which not many lenders do.

Rent assistance from the government for a family owned property will probably not happen. Seen as a contrived tenancy.

Check all of this out before proceeding and parting with any fees