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Can I Get a Buy-to-Let First-Time Buyer Mortgage?

It is possible to secure a buy-to-let first-time buyer mortgage, but a lot depends on your finances and circumstances, as it is less common for a lender to organise a buy-to-let mortgage first-time buyer deal.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

Almas Uddin2023-05-09
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Can I Get a Buy-to-Let First-Time Buyer Mortgage?

It is possible to secure a buy-to-let first-time buyer mortgage, but a lot depends on your finances and circumstances, as it is less common for a lender to organise a buy-to-let mortgage first-time buyer deal.

You will not qualify for any first-time buyers scheme if you are taking out your first mortgage on a rental investment, and most of the mainstream lenders will not consider this type of application.

However, that doesn’t mean you can’t become a first-time buyer buy-to-let owner, but that expert advice from an independent broker is even more important to ensure you get the buy-to-let first-time buyer mortgage you need.

Applying for a First-Time Buyer Buy-to-Let Mortgage

The positive news is that you can take out a mortgage as a first-time buyer buy-to-let investor. Still, this non-standard mortgage deal will be considered a higher risk, and you'll normally pay higher interest rates, need a larger deposit, or possibly both.

Most banks only provide landlord mortgages to customers who already use their facilities. Hence, it's less likely a high-street lender will be a great option if you'd like a first-time buyer buy-to-let mortgage – although that could be an option if you bank with a lender who offers this product.

It is more common for someone to use a first-time buyers scheme and purchase a residential home and then apply for a rental mortgage because the payment history they have accumulated is one of the factors a lender will assess.

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Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.


Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.


Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.

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Points to Consider When Considering a Buy-to-Let Mortgage First-Time Buyer Product

Rental properties can provide a stable, long-term income, but there are several responsibilities and financial obligations associated with being a buy-to-let first-time buyer owner.

We’d also suggest a prospective first-time buyer buy-to-let investor evaluate:

  • Their intention to buy a residential home after the buy-to-let first-time buyer mortgage. It may be harder to take out a mortgage on a home if you have a rental mortgage debt.
  • If your plans change and you decide to live in your first-time buyer buy-to-let mortgage, you will need approval from your lender, in the same way as if you wished to use a property on a residential mortgage as a rental.
  • Acting as a landlord can be profitable and generate a good income – but you will normally need two to three years of experience and accounts to apply for a self-employed mortgage in the future.

However, if you do not need to buy a home through a first-time buyers scheme, for example, because you live in an inherited property or with family members, the income from a buy-to-let first-time buyer residence could generate enough earnings to buy another home in the future.

Living in a Home Purchased as a Buy-to-Let First-Time Buyer

As we’ve touched on, the rules around living in a property purchased as a buy-to-let depend on the lender, but you may be able to transfer a first-time buyer buy-to-let mortgage to a residential product and vice versa. Not all lenders will do so, and a remortgage may be necessary.

Choosing the Best First-Time Buyer Mortgage for a Buy-to-Let

Lender criteria will usually be different in a buy-to-let mortgage first-time buyer application than a standard mortgage because rental mortgages are higher risk and therefore require a higher deposit.

Mortgage providers will also need to know the rental income you expect to receive from a first-time buyer buy-to-let property.

Normally, they will want to see a deposit of at least 25%, a good credit history, and will evaluate your employment status, income, age and affordability before agreeing to a buy-to-let first-time buyer mortgage.

The buy-to-let first-time buyer assessment process also varies, and a mortgage provider will ask for documentation such as payslips, business accounts, a copy of your employment contract, up to six months of bank statements, a landlord’s reference where applicable and your address history.

Before moving ahead with a buy-to-let mortgage first-time buyer agreement, a lender will also wish to see proof of the projected rental earnings, usually provided by a letting agent or surveyor who can issue a written rental evaluation.

Standard terms mean you’ll need to show expected earnings of between 125% and 140% of the buy-to-let first-time buyer monthly mortgage costs to be eligible.

Payment Terms on the Best First-Time Buyer Mortgage for Landlords

First-time buyer buy-to-let mortgages are usually interest-only, which means the monthly payment comprises solely the interest, without repaying any of the borrowed capital. The concept is that a buy-to-let first-time buyer simply needs to cover the mortgage interest with the rent to make a profit.

The outcome is that repayments on a buy-to-let first-time buyer loan will usually be lower. However, the capital remains unpaid, so you will need to remortgage or sell at the term end.

Average Interest Rates on Buy-to-Let First-Time Buyer Mortgages

The best first-time buyer mortgage rates won't apply to a buy-to-let first-time buyer since residential and rental mortgages are different products and are often available from different lenders.

It's also important to clarify that you won't be able to use any first-time buyers scheme to reduce the costs or improve your eligibility. A first-time buyer stamp duty calculator won't apply since the higher threshold only applies to residential properties.

Interest rates are higher and will depend on the property value and projected rental income. Some first-time buyer buy-to-let lenders will also stipulate that you need a separate annual income, often of at least £25,000.

Most first-time buyer buy-to-let lenders will expect a deposit of at least 25%, compared to 5% on a regular mortgage, so you will be able to borrow a much lower Loan to Value maximum.

However, it is certainly possible to invest as a buy-to-let first-time buyer, provided you understand the additional costs and criteria. The other aspect of becoming a first-time buyer buy-to-let owner is that the rental income should more than cover the interest-only repayments, so you should be able to generate a profit fairly quickly.

Expert Advice on Applying for a First-Time Buyer Buy-to-Let Mortgage

Revolution Finance Brokers is an independent, whole-of-market broker specialising in non-standard mortgage agreements. If you are looking for the best first-time buyer mortgage to purchase a buy-to-let, please get in touch at any time to discuss the options and the ideal mortgage structure for you.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

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Frequently Asked

You will need a down payment of at least 25% for most buy-to-let first-time buyer mortgages since lenders perceive rental properties as a higher risk. They won't accept a minimal 5% deposit, which is normally acceptable for mortgages enrolled in a first-time buyers scheme.

Lenders use different assessments and affordability checks for a buy-to-let mortgage first-time buyer applicant, so they will need to evaluate the projected rental income the property will generate alongside other aspects of your finances and the property value.

However, the primary consideration is the rental value of the buy-to-let first-time buyer investment, so a lender will often cap the loan based on the expected profitability of the accommodation.

Being a first-time buyer and purchasing a buy-to-let are both risk factors, so it would be very challenging to secure one of the best first-time buyer mortgage rates if you also have bad credit to contend with.

Specialist and niche bad credit lenders may be prepared to consider a buy-to-let first-time buyer with a low credit score, depending on the circumstances, and usually only if you have a significant deposit and are prepared to pay higher interest rates.

It's also important to note that upper borrowing limits and credit are less of an issue in a first-time buyer buy-to-let agreement, purely because the underwriter will base much of their decision-making on the profitability of the property.

General adverse credit issues or reports with a low value or several years ago are likely to be less consequential, so there is often a way to move forward, provided you work with a knowledgeable broker who can recommend specific lenders who will lend to a buy-to-let first-time buyer who falls outside of other lender’s criteria.

Guarantors are normally only used for first-time buyers who don't have a sufficient deposit to get the best first-time buyer mortgage rates. Still, some lenders might be happy to assess an applicant with a guarantor against a buy-to-let first-time buyer mortgage.

They are more likely to consider this structure if you are only slightly outside of their criteria.

No, first-time buyer stamp duty calculator tools will assume you are purchasing a residential property and eligible for the higher stamp duty exemption threshold. Commercial properties and those purchased as a rental do not qualify for tax exemptions.

You cannot – a first-time buyers scheme aims to support people buying their own home to live in and will not apply to buy-to-let property investments.

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.

We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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