First time landlords

Buy to Let Mortgages for the first time landlord.

Is your first time becoming restrictive?

Being a first time landlord, can restrict some mortgage lenders from agreeing a buy to let (BTL) mortgage, just on this basis. Additionally, if you have never owned a property, it's even more restrictive.

However, there are lenders available, who will accept first time buyer and first time landlord buy to let mortgage applications and at high street interest rates. Give us a call, as there is a very limited choice of buy to let (BTL) mortgage lenders for first time landlord and first time buyers.

There are many issues surrounding someone buying their first property as a buy to let, not least lacking the experience of just having a mortgage in the first place. But also the experience of managing the property and its tenants for the first time.

However, the bigger issue for the mortgage lender is the risk of a mortgagee not adhering to the Mortgage Agreement. Obviously there is always the risk the repayments are not met, but the mortgage lender has assessed this risk during the application. The increasing risk to the buy to let mortgage lender is what's called 'policy abuse' because today mortgage regulators requires every residential mortgage to evidence income and affordability. Thorough experience, the lenders face a high risk a first time buyer landlord may actually be a first time home buyer who's income cannot support the mortgage advance based on the income multiples.

This concern is heightened now that there is a new EC Directive which comes in to force April 2016, which will regulate these buy to let mortgages where the owners have moved into the property.

Buy to let mortgages on properties which are let to a close family member is also classed as a regulated mortgage and as such are already covered under the Financial Conduct Authority.

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Your home may be repossessed if you do not keep up repayments on a mortgage or any other debts secured on it. Think carefully before securing other debts against your home. Buy to let (pure) and commercial mortgages are not regulated by the FCA. No broker fee is charged typically; as commission received from the mortgage lender pays our minimum fee of £495 and any shortfall will be charged only on completion of your mortgage. Vincent Burch Ltd. is an Appointed Representative of JLM Mortgage Services Ltd., authorised and regulated by the Financial Conduct Authority, (FCA), registration number: 300629.

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