FTB looking to purchase 2 properties

thearcher

I am a first time buyer and looking to purchase 2 properties.

I am looking to purchase 1 property to live in and another to rent out so looking at getting a FTB mortgage and a BTL mortgage.

I have 2 properties in mind and have a 25% deposit for both properties however have been advised by friends and family that I am unlikely to be able to get 2 mortgages since mortgage lenders don't offer BTL to first time buyers.

The combined value of the 2 properties is only £150k and I expect my minimum repayments on a 25yr mortgage would be in the region of £600 per month. My wages comfortably allow me to pay both mortgages even if my BTL was empty. I would not be relying upon rental income although my potential income from renting would cover my repayment on that property by 300%.

I would be looking to repay both my mortgages as quickly as possible (ideally within 5 years) by making overpayments from a combination of my rental income and subsidising it from my wages so I would like a mortgage that allows unlimited overpayments. I expect to make between a £800-£1400 overpayment each month depending upon whether my BTL is rented out. I was initially considering a 5yr term however thought best to get a 25yr and make overpayments in case "the worst" happens and I either need funds for something else - don't want to overstretch myself!

Can anyone give me any advice in this area either from personal experience or knowledge of the market?

I'm basically wanting to understand if applying for 2 mortgages as a FTB buyer is possible and how likely it is to get something like this based on my circumstance? I have read that if I were to get a FTB mortgage initially and then wait 6 months+ before applying for a BTL I would be more likely to get what I am looking for - the only downside to this is that I have my eye on 2 properties at present which I would like to move forward on at the same time - not only are they priced well but also next door to each other which makes buying and managing the 2nd as a BTL more appealing.

ACG

There are BTL lenders who will lend to first time buyers.

Are the 2 properties connected?

Are you not able to buy 1 live in it for a few weeks and then start the application for the BTL?

Might be worth sitting down with a broker. Im sure it can be done, its just about how best to do it.

thearcher

ACG wrote: »

There are BTL lenders who will lend to first time buyers.

Are the 2 properties connected?

Are you not able to buy 1 live in it for a few weeks and then start the application for the BTL?

Might be worth sitting down with a broker. Im sure it can be done, its just about how best to do it.

Thanks for the fast response on this ACG.

To answer your questions:

The 2 properties aren't connected but next door to each other - they are flats in the same building block but have separate communal stairwells.

I could live in the first one for a few weeks as you suggest but there is no guarantee the 2nd property would still be available come then assuming it takes an additional 6-12 weeks to complete prior to those few weeks.

I think I will do as you advise and see a broker, I just though I would reach out via this forum for any first hand experience first.

Thank you