• Buy to let mortgages for first time buyers: Everything you need to know…

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    If you have found yourself in the position where you are considering investing in a buy-to-let property; the choices can often be overwhelming – and you’ll most likely have a lot of questions. Getting a buy-to-let can be a very rewarding choice. But to make the most out of the opportunities available to you in the sector; there are some key factors to take into consideration – and getting yourself to grips with the basics is essential…

    What is a buy to let mortgage?

    Unlike a residential mortgage; a buy to let mortgage is a form of loan where a property is purchased with the intention of letting the property out to tenants – as opposed to living in it and is therefore subject to different underwriting criteria and interest rates.


    What are the main differences between buy to let mortgages and regular ones?

     You will tend to find that these are the key differences between buy-to-let mortgages vs residential mortgages:

    • The amount a lender is prepared to lend will be based on the rental income that the property will be able to achieve from tenants paying rent.
    • These mortgages are considered a ‘business’ transaction’ – as the property that the mortgage is to be secured on is not the borrower’s home.
    • Higher fees and higher interest rates are generally to be expected; along with a lower maximum loan-to-value.
    • These are generally interest-only mortgages; whereby landlords only pay the interest repayments.
    • Buy-to-let mortgages are not regulated by the Financial Conduct Authority, however, this type of mortgage is regulated like a normal mortgage.


    Can I buy a buy to let property as a first-time buyer?

    Whether you are a first-time landlord or a first-time buyer; you’ll be glad to know that the answer in both cases can be ‘yes’. It’s worth bearing in mind though that most lenders prefer that you have owned your own property for at least 6 months prior to application.


    Getting a buy-to-let as a first purchase

    If you are struggling to get yourself on the property ladder – and have for whatever reason found yourself locked out of home ownership; you might well be considering investing in a less expensive area – and perhaps wondering whether a buy-to-let might offer you an alternative means of venturing into the property market for the first time.

    Whilst this is definitely a possibility; you will likely find that the number of mortgages available to you will be extremely limited. You’ll also probably need to accumulate a bigger deposit to get yourself a good deal.

    Don’t be disheartened though. Do your research – and seek out the best options available to you. If you find yourself feeling unsure of your options; then seek out professional advice. A good adviser will know the best lenders for your situation. If you do go down that route; please make sure you check that your adviser is on The FCA Register.

    You will also of course need to develop an in-depth understanding of your responsibilities as a landlord.


    Getting the best buy to let

    Before you take any action; make sure that you benefit from this expert advice on getting the best out of your buy-to-let investment.


    What do I do if my tenant doesn’t pay the rent?

    Becoming a landlord for the first time comes with a multitude of worries. And worrying about tenants not paying the rent is probably (understandably) one of the worst. Luckily, there is a unique solution available to you.


    ARO: The Advanced Rent Option by Choices

    ARO is a high-quality full management service that includes a year’s rent upfront at no extra cost: eliminating the need to worry. Find out more about this unique offering here and calculate how much you could get. There’s something else you might be interested in too.


    Here to help you make the right choices

     Since opening our very first office in June 1989; we now operate from multiple offices in the South-East of England – and are  widely considered one of the UK’s most successful estate agencies; having won the ‘Best Agent’ award for three consecutive years in a row. Customer service has always remained at the heart of our business – and our reputation is built on an ethos of honesty and integrity. Contact us today if you would like to find out more about how our expert help could be of significant benefit to you.

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