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There
has been a swathe of tax and regulatory changes impacting on the buy-to-let
sector in recent years which may have affected the perception of residential
rental property and its viability as an investment option. Consequently, the sector
has seen a reduction in the number of amateur landlords and it is now primarily
the domain of professional property investors. However, there are still people
entering the market and looking to make their first buy-to-let purchases – a group
referred to as ‘first time landlords’.
Most
lenders on the Property Hawk Mortgages panel will accept applications from first time landlords
providing they are currently an owner occupier, so there are plenty of product
options in the marketplace. There is often a requirement that applicants have
owned their residential home for a minimum length of time which may vary from 6
to 12 months, although some lenders do not state a minimum period providing the
applicant’s name is on the title deeds.
It
is not quite as straightforward for first time buyers - those with no existing
UK property at all. Property Hawk Mortgages currently has around fifteen lenders on panel who will
consider applicants without a history of property ownership such as Barclays, Landbay,
Precise and Vida Homeloans. Some lenders will apply an affordability
calculation alongside their normal rental stress tests and criteria, which
depending on income multiples may limit the amount applicants can borrow.
There
are also options for first time buyers to be the second applicant on a buy-to-let
mortgage and it is a familiar scenario when parents help their children onto
the property ladder in this way. Lenders who consider this include Interbay, Leeds
Building Society and Paragon.
To discuss your buy-to-let mortgage requirements please contact the Property Hawk Mortgages team on: 029 2069 5446
Or use our free online mortgage search tool at Property Hawk Mortgages
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