18th March 2016

Mortgage Myths And Misconceptions: Can I Get A Buy To Let Mortgage As A First Time Buyer?


Another question we get asked a lot is as a first time buyer, can I apply for a Buy to Let mortgage? The first thing that must be addressed is that the applicant must not live in the property they’re applying for. This type of mortgage is strictly for landlords. The second thing to address is yes, you can get a BTL mortgage as a first time buyer, but options are very limited.

A BTL mortgage with most lenders allows you to borrow a lot more than 5x the applicant’s income as long as the rent’s a good enough rate for the applicant to make a decent sum of money. All the rent earned from the house goes to the applicant. However, as it’s a mortgage, the landlord will still have to pay it off monthly. The risk for lenders is that people, especially first time buyers, will abuse the amount of money they can borrow just because there are barely any limitations and will then try and live in the property they’ve purchased. Therefore, most lenders will refuse to do a BTL if you’re a first time buyer in case you can’t actually afford it and you’re trying to live in the property yourself.

However, Natwest will allow first time buyers to apply for a BTL as their parameters are different to other lenders. They treat their Buy to Lets like a residential mortgage. This means you can only borrow up to 5x your salary. Natwest will not lend more than 5 times your income as to not over commit you with the amount of lending. They will want a 25% deposit like most other lenders. Other than some credit checks which all lenders will do, it’s quite as simple as that.

If you need anymore information on this matter, on you are a first time buyer looking to take out a Buy to Let mortgage, call one of our advisers on 01603 750022.

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