When Sarah searched for FTB Buy-to-Let Mortgages, she was not looking for her first home. She was planning her first property investment. Like many new landlords, she needed clear guidance, realistic expectations, and a lender that understood her position. Her journey is typical of first-time buyers entering the buy-to-let market, and it highlights why structured, compliant, and easy-to-read information matters.
What are FTB Buy-to-Let Mortgages
First-time buyer buy-to-let mortgages are designed for people who have never owned a residential property and want to purchase a property to rent out. This type of mortgage is not available from all lenders. Many lenders apply stricter rules than standard buy-to-let mortgages.
Lenders usually assess these applications carefully. They consider rental income, deposit size, and overall risk. Some lenders may prefer applicants who already own a home, which makes professional advice important at an early stage.
You can learn more about standard options by visiting our Buy-to-Let Mortgages page.
Can I Become a Landlord if I am Not an Existing Homeowner?
Many people ask whether it is possible to become a landlord before owning their own home. For those exploring First-Time Buyer Buy-to-Let Mortgages, the answer is yes, but with important limitations.
Most buy-to-let lenders prefer applicants who already own a residential property. However, some lenders will consider first-time buyers who want to invest in rental property. This means you can become a landlord even if you have never owned a home in the UK or abroad.
A buy-to-let mortgage is designed to finance a property that will be rented out rather than lived in by the owner. It differs from a residential mortgage, which is intended for owner-occupiers. Lenders assess buy-to-let mortgages primarily on rental income, although personal finances are also reviewed.
If you are a first-time buyer, lenders consider you a higher risk. This is because you have no history as a homeowner or landlord. As a result, fewer lenders offer First Time Buyer Buy to Let Mortgages, and those that do usually apply stricter criteria.
You may find that lenders:
- Require a larger deposit than standard buy-to-let mortgages
- Charge higher interest rates
- Expect higher rental income to cover mortgage repayments
Other factors are also considered during the assessment. These include your age, credit history, employment type, and overall income. Together, these details help lenders decide whether the mortgage is affordable and what terms may apply. Understanding these requirements early can help you plan more effectively.
If you are unsure whether this route is suitable, speaking to a qualified adviser can help you understand lender expectations and risks. Your home may be repossessed if you do not keep up repayments on your mortgage or any loans secured on it.
Eligibility and lender criteria
Lender criteria for first-time buyer buy-to-let mortgages can vary. However, some common requirements include:
- A higher minimum deposit than standard buy-to-let products
- Proof that the expected rental income can cover the mortgage
- A good credit history, although some lenders are flexible
- Evidence of affordability and financial stability
Some lenders may also assess personal income, even though the mortgage is based on rental yield. This makes preparation and accurate information essential.
If you are also exploring residential options, our First Time Buyer Mortgages guide provides useful comparisons.
Deposit Requirements and Affordability
Most lenders require a deposit of at least 25 per cent for first-time buyers to buy-to-let mortgages. In some cases, a higher deposit may be needed to access better interest rates.
Affordability is usually calculated using projected rental income. Lenders often require that the rent exceed the mortgage payment by a specified percentage. This is known as a rental stress test.
It is important to remember that rental income is not guaranteed. Landlords must be prepared for void periods, maintenance costs, and changes in interest rates.
Risks First-time Landlords Should Understand
Entering the buy-to-let market carries financial risk. Property values can fall, and rental income may fluctuate. Interest rates may rise over time, increasing monthly costs.
Lenders also view first-time buyers as higher risk in the buy-to-let market. This is why fewer products are available, and the criteria are stricter.
To get an in-depth understanding of being a first-time landlord, visit our blog on First-Time Landlord Mortgage Advice.
Why Buy-to-Let Mortgages Considered Higher Risk
Buy-to-let mortgages are generally viewed by lenders as higher risk than standard residential mortgages. This is because repayment largely depends on rental income rather than personal income. As a result, lenders often apply higher interest rates, require larger deposits, and set stricter lending criteria.
For borrowers, these risks are important to understand before entering the buy-to-let market.
Key risks for buy-to-let borrowers
- Rental void periods: There may be times when a property is empty between tenants. During these void periods, no rental income is received. However, the mortgage payment must still be made. Other costs, such as council tax, utilities, and insurance, may also remain payable.
- Tenant-related issues: Tenants may fail to pay rent on time or fall into arrears. In some cases, tenants may cause damage to the property. These situations can lead to financial losses and, in some cases, legal costs associated with eviction or rent recovery.
- Property market changes: Property prices can rise over the long term, but they can also fall. If the property’s value declines, you may enter negative equity. This means the mortgage balance could exceed the property’s value, which can limit refinancing options.
- Interest rate increases: Many buy-to-let mortgages are interest-only. This means monthly payments cover interest but do not reduce the loan balance. If interest rates rise, monthly payments can increase significantly. This can affect affordability and rental profitability.
- Ongoing and unexpected costs: Landlords are responsible for maintaining the property. Repairs, servicing, and compliance costs can arise at any time. Larger expenses, such as boiler replacement, can have a significant impact. Letting agent fees and insurance costs can also reduce overall returns.
- Changes to tax and regulation: The tax and regulatory environment for landlords can change. In the UK, changes such as reduced mortgage interest tax relief and higher Stamp Duty Land Tax on additional properties have affected profitability for some landlords. Future changes may also impact costs and income.
- Limited lender control: Lenders consider buy-to-let higher risk because they have no control over tenant selection or rental performance. Mortgage repayment depends on the rental property’s performance. If rental income falls, the borrower remains responsible for the full mortgage payment.
Important reminder
Your home may be repossessed if you do not keep up repayments on your mortgage or any loans secured on it.
Understanding these risks helps borrowers make informed decisions and plan effectively before applying for a buy-to-let mortgage.
How Connect Mortgages Can Help
Connect Mortgages provides access to a wide range of lenders, including those who consider first-time buyer buy-to-let applications. Our advisers understand lender criteria and can help you assess whether this route is suitable for your circumstances.
We help clients understand costs, risks, and realistic outcomes before applying. This reduces the risk of declined applications and helps you move forward with confidence.
You can explore costs using our Mortgage Calculator. If you are ready to speak to an adviser, visit our Contact Us page.
Part of the Connect Group
Connect Mortgages is part of the Connect Group. Connect Experts and Connect for Intermediaries are trading divisions of Connect IFA Ltd. This structure supports high standards of advice, compliance, and access to specialist knowledge.
Mortgage advisers can Join Our Mortgage Network. Clients seeking regulated advice can use Connect Experts to “Find Mortgage Advisers.
FTB Buy-to-Let Mortgages can be a viable route for new property investors, but they require careful planning and realistic expectations. Understanding lender criteria, deposit requirements, and risks is essential.
With the right advice and preparation, first-time buyers can enter the buy-to-let market with clarity and confidence. Connect Mortgages is here to support you at every stage of that journey.
Thank you for reading our “FTB Buy-to-Let Mortgages | First-Time Buyer Mortgages” publication. Stay “Connect“-ed for more updates soon!
