Buy-to-Let Mortgages for First-Time Property Investors
Step into property investment with expert guidance
Investing in buy-to-let property can be a powerful way to generate rental income and build long-term wealth. As a first-time landlord, understanding how buy-to-let mortgages work is essential to making confident and profitable decisions. At Reliance Mortgages, we specialise in helping new investors navigate the process with clarity and confidence—from your first quote to securing your mortgage.
Can First-Time Buyers Get a Buy-to-Let Mortgage?
Yes – first-time buyers can apply for buy-to-let mortgages. While lender criteria can vary, many are open to applications from new landlords, even if you don’t currently own a residential property.
Lenders typically consider:
- Your credit history and financial track record
- Your personal income
- The property’s expected rental income
- Your deposit amount and loan-to-value (LTV) ratio
Typical Mortgage Criteria for First-Time Landlords
Every lender has its own approach, but most will assess whether the rental income is sufficient to cover the mortgage repayments—usually between 125% and 145% of the monthly payment, using a “stress-tested” interest rate.
Common requirements include:
- Minimum personal income of £25,000 per year (though some lenders may be flexible)
- Deposit of at least 25% of the property’s value
- Strong credit score and stable finances
- You do not need to own a residential property—many lenders accept first-time buyers
At Reliance Mortgages, we regularly help first-time landlords secure competitive buy-to-let finance, even without a prior mortgage history.
Key Considerations Before You Invest
1. Location: Choose the Right Area
Rental demand and capital growth depend heavily on location. Look for areas near transport links, universities, hospitals, or employment hubs—these typically attract reliable tenants and offer long-term growth potential.
2. Ownership Structure: Personal vs. Limited Company
Buy-to-let properties can be purchased in your personal name or through a limited company (usually a Special Purpose Vehicle or SPV). Each option has different tax implications, mortgage availability, and reporting responsibilities. We recommend speaking with a qualified accountant to determine what’s best for your investment goals.
3. Yield: Know Your Return
Yield measures your return on investment from rental income.
Example:
Annual rent: £12,000 (£1,000 per month)
Property price: £200,000
Gross yield = £12,000 ÷ £200,000 = 6%
Higher yields can improve affordability and borrowing potential.
Types of Buy-to-Let Investments
- Standard Single-Let (AST): One tenancy agreement for a single household
- HMO (House in Multiple Occupation): Multiple tenants sharing communal spaces; higher yields, but licensing is required
- Student Let: High demand near universities, typically with fixed-term contracts
- Short-Term Let / Airbnb: Short-term stays for professionals or holidaymakers; requires a specific holiday let mortgage
- Holiday Let: Properties in tourist areas with seasonal rental income
How Much Can I Borrow?
Buy-to-let mortgage borrowing is based mainly on rental income, with most lenders offering up to 75% LTV. In some cases, up to 80% is possible depending on yield and your overall financial profile.
We help clients explore strategies such as:
- Top-slicing: Using personal income to support the loan if rental income is too low
- Enhanced LTVs: For high-yield properties or experienced borrowers
- Fixed-rate mortgages (5+ years): Improve affordability and meet lender criteria more easily
Making It Work in Low-Yield Areas
In places like London and the South East, rental yields can be lower—but this doesn’t mean your options are limited.
Some lenders allow top-slicing, using your personal income to boost affordability. Others offer enhanced loan amounts if you choose a 5-year or longer fixed rate, which improves the lender's risk profile and your borrowing power.
Additional Costs to Budget For
- Stamp duty (including the additional 3% for second properties)
- Survey and solicitor fees
- Buy-to-let insurance
- Property maintenance and repairs
- Letting agent fees (if applicable)
- Furniture and appliances
- Rent guarantee insurance
- Void periods (times when the property is unoccupied)
Start Your Buy-to-Let Journey Today
Becoming a landlord is a major step towards financial independence. With the right advice and a broker who understands the market, you can make a confident start.
At Reliance Mortgages, we support first-time landlords every step of the way—from your initial enquiry to final mortgage approval.
- Get a tailored quote in just 15 minutes
- Expert support from brokers who understand first-time investors
- Access to specialist and high street lenders
Book Your Free Consultation Today
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