Buy to Let v First Time Buyer Regulations

jim6609

Evening All,

First Post so here goes.

What are the rules surrounding buy to let mortgages against first time buyer? Clearly if I am buying a property, my first one, that I intend not to live in but rent out then I would still need a buy to let. However is there a way of getting round not having to get a buy to let and get a first time buyers mortgage instead? :cool:

Jim

I apologise now if this ground has been covered before; I did have a shufty before posting but did not find anything.

PasturesNew

You would need a BTL mortgage, because when you buy then let it, the mortgage company are taking on a different/greater risk than if they were lending it to somebody to live in (whether a FTB or not).

BNB_2

Jim I am in a similar situation,

I was a first time buyer therefore got a first time buyer mortgage. I lived in the house for about 3 months and then had a sudden change of circumstance. This resulted in me not needing my house to live in for sometime.

I have now decided to put my house on rent and not really told anyone apart from getting buy to let insurance. After seeing this topic its making me think now.

dunstonh

I have now decided to put my house on rent and not really told anyone apart from getting buy to let insurance. After seeing this topic its making me think now.

You need to ask the lender permission as you want to break the T&C of your mortgage. Most will agree so it isnt a problem. You also need to remember the tax man and that only the interest element of your mortgage is a business expense against the rental income. Like any business, you are best keeping a cashbook of your income and expenditure related to the property to satisfy HMRC.

Dan_Collins_2

Being a first time buyer you are able to take advantage from the fact that you have no resi mortgage. Being a FTB will reduce the amount of lenders you have to choose from on a b2l basis, but not enough to be a real worry. If your income is over 25k Astra (Norwich and Peterborough) are looking good and Abbey also have some good deals all on buy to lets and 85% LTV max. If you go resi you are pushing the line a little. If you pay your mortgage each month you will not have an issue but if you do get in to trouble you will get no support as you committed fraud to get the mortgage. I would go B2L to keep it clean and above board but the choice is yours!