Purchasing a property to rent out, First Time Buy

BlessingOfChaos

Hi, thanks for looking.
So my partner lives with me in my mortgaged house, so her official rent is effectively 0. And she is not on my mortgage. Because of this she is thinking to get a small property such as a flat to rent out, primarily to a friend for a few years, and then as a normal rental property. With the goal to be to own the property by the end mortgage free (so not just an interest loan, as BTL seems to like to be)
What is the best way to go about this? Is there any way she would not have to go through the BTL route as this seems more expensive and more frustrating to setup for a First Time Buyer.
Looking at property around the 60-80k mark. Have £15k to put in if necessary.
Thanks again for any help.

gaz_moose

can you even use HTB on a BTL????????

roosterpotatoes

You can't use HTB on a BTL. Also, as it's a BTL mortgage you need you would need 25% deposit. You can't rent out a house on a residential mortgage, it must be BTL

BlessingOfChaos

Okay thanks for the replies, so the BTL is the only option then? There is not any other route to go down? Thanks

Mojisola

The idea of renting it a friend is fraught with potential problems.

Thrugelmir

Your partner can pay down the BTL mortgage if she wishes. Remember the net income received is taxable. Suggest that you crunch the numbers to see if the plan is viable.

Though personally I would recommend against mixing business and friends. Being a LL will result in a very different relationship. As there's a paying tenant to service.