Table of Content
Are first-time buyers allowed to get a Buy-to-mortgage?
Yes, it’s certainly possible for first-time buyers to get a buy-to-let mortgage. However, because you don’t currently own a property, lenders often see you as a higher risk. That means there are fewer options available, and the rules around affordability and criteria are different compared to mortgages for existing or previous homeowners.
At Strive, we specialise in buy-to-let mortgages — from first-time buyers taking their first step into property investment, right through to experienced portfolio landlords. We know which lenders are open to first-time applicants and how to structure your case to give you the best chance of approval.
How Does a First-Time Buyer Buy-to-Let Mortgage Work?
For existing homeowners, buy-to-let affordability is usually assessed based on the expected rental income from the property. If the rent comfortably covers the mortgage payments, most lenders are satisfied.
For first-time buyers, the process is different. Lenders tend to apply checks more like a residential mortgage assessment, looking at your earned income, credit profile, and personal outgoings such as rent, loans, or childcare costs. This is because, without prior homeownership experience, banks see you as a higher risk.
Some lenders adopt a hybrid model — taking into account a portion of the projected rental income alongside your salary, while also reviewing your financial commitments. Others may simply ask whether you could afford the property as if it were your own residential mortgage.
In short, the criteria for first-time buyer buy-to-let mortgages are stricter and more complex than for existing landlords. Success often comes down to knowing which lenders have policies designed for first-time investors and how to position your application.
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How Much Deposit Do You Need for a First-Time Buyer Buy-to-Let Mortgage?
The deposit requirements for first-time buyer buy-to-let mortgages are usually higher than standard residential mortgages. Exactly how much you’ll need depends on the lender, their affordability calculations, and the strength of the rental income.
- Many lenders set a minimum deposit of 25% (75% LTV).
- Some lenders may require 30% or more, particularly for first-time landlords.
- If the rental income isn’t strong enough to meet affordability checks, a larger deposit may be needed to make the deal work.
In short: while 25% is often the starting point, you should be prepared for lenders to ask for more depending on your circumstances.
What rates are available for a first-time buyer buy-to-let?
This will depend on the market conditions at the time of application and the size of the deposit you put down. If you qualify for an FTB BTL mortgage with a mainstream lender, the rates will be similar to those offered to existing homeowners.
The rates themselves are exactly the same as regular BTL buyers, however, less lenders offer them. Therefore by default, they can sometimes be more expensive.
Can a First-Time Buyer Get an Interest-Only Buy-to-Let Mortgage?
Yes — most first-time buyer buy-to-let mortgages are available on an interest-only basis. This can be an attractive option if you want to:
- Keep monthly overheads lower, giving you more flexibility in case of rental voids.
- Free up cash flow to save or re-invest in additional properties.
You’ll also usually have the option to make overpayments within your lender’s agreed limits. On most fixed-rate products this is capped at around 10% of the balance per year, giving you the flexibility to reduce the loan if you wish while still keeping the benefits of interest-only.
Alternatively, you can choose a repayment mortgage to gradually clear the balance, or a part-and-part arrangement (split between interest-only and repayment) for a mix of flexibility and long-term debt reduction.
Which Lenders Consider First-Time Buyer Buy-to-Let Applications?
Not all lenders are open to first-time buyers applying for buy-to-let mortgages. Some see it as higher risk, while others have specific products designed to support new landlords. Below is a breakdown of which lenders are generally acceptable and which are not for first-time buyer buy-to-let applications.
| ✅ Acceptable Lenders | ❌ Not Acceptable Lenders |
|---|---|
| Hanley Economic BS | The Co-operative for Intermediaries |
| Hinckley and Rugby BS | HSBC |
| Vernon BS | Shawbrook Bank |
| Leek BS | Virgin |
| Molo Finance | Stafford BS |
| Skipton International | Furness BS |
| Darlington Intermediaries | Interbay Commercial |
| Leeds BS | Nottingham BS |
| Melton BS | Swansea BS |
| Barclays | Zephyr Homeloans |
| Penrith BS | Beverley BS |
| Mercantile Trust | Tipton BS |
| Clydesdale Bank | Keystone Property Finance |
| West One Loans | Bath BS |
| Quantum Mortgages | Foundation Home Loans |
| Buckinghamshire BS | Monmouthshire BS |
| Vida Homeloans | Cambridge BS |
| Gatehouse Bank | Teachers BS |
| Castle Trust | Kent Reliance |
| Mansfield BS | Lendco |
| Octopus Real Estate | Paragon Mortgages |
| Chorley BS | Pepper Money |
| The Mortgage Works | Accord Mortgages |
| Principality BS | Market Financial Solutions |
| CHL Mortgages | Skipton BS |
| Suffolk BS | TSB |
| Harpenden BS | Fleet Mortgages |
| Saffron for Intermediaries | Newbury BS |
| Metro Bank | Bespoke BOI |
| Kensington Mortgages | Aldermore |
| Market Harborough BS | Central Trust Limited |
| NatWest | Landbay |
| The Loughborough BS | LendInvest |
| Hampshire Trust Bank | Family BS |
| BM Solutions | Bank of Ireland |
| Together | Coventry BS |
| ModaMortgages | United Trust Bank |
| State Bank of India | Newcastle for Intermediaries |
| Dudley BS | Precise Mortgages |
| The Mortgage Lender | |
| Santander |
Joint Applications for Buy-to-Let
One option for first-time buyers is to apply jointly with another person. Adding a second applicant who is a homeowner or has additional income can give you a much broader range of lender options and increase borrowing potential.
The drawback is that, on most joint mortgages, both applicants are named on the title deeds. If one of you already owns a property, the purchase could trigger the 5% additional stamp duty surcharge that applies to second homes and buy-to-let properties.
Joint Borrower Sole Proprietor (JBSP) Buy-to-Let
An alternative — though offered by relatively few lenders — is a Joint Borrower Sole Proprietor (JBSP) buy-to-let mortgage.
This works much like a guarantor mortgage:
- A second person can be added to the mortgage to help with income and affordability.
- However, they are not named on the property’s title deeds.
- As a result, stamp duty is only charged to the buyer named on the deeds, not the supporting applicant.
JBSP mortgages can be a powerful way to boost borrowing capacity without increasing stamp duty costs, but they require careful lender selection.
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Is There a Minimum Income Requirement for Buy-to-Let Mortgages?
Yes — most lenders do set minimum income requirements, but the rules vary depending on whether you’re already a homeowner or a first-time buyer.
- Existing homeowners (non–first-time buyers): Many buy-to-let lenders have no minimum income requirement, while others typically set the bar at around £25,000 per year.
- First-time buyers: The rules are usually stricter. Most lenders will want to see at least £25,000 annual income, and in some cases, they may require more. This is because affordability is assessed differently for first-time landlords, and lenders view them as higher risk.
At Strive, we know which lenders are most flexible on income thresholds and how to position your application for approval — whether you’re a first-time investor or an experienced landlord.
How Much Can I Borrow on a First-Time Buyer Buy-to-Let Mortgage?
The amount you can borrow as a first-time buyer depends on both the loan-to-value cap and the affordability model used by the lender.
- Loan-to-Value (LTV): Most lenders cap borrowing at 75% of the property’s value.
- Affordability: For first-time buyers, the assessment is more of a hybrid model, combining personal income with the projected rental income. Typically, lenders may allow up to 4.5 times personal income, but exact figures depend on the case.
- Joint applications with a homeowner: If you buy jointly with someone who already owns a property, affordability is usually based more heavily on rental income rather than personal income.
- Fixed rate period: Some lenders are more generous on affordability if you take a 5-year fixed rate, compared to shorter-term products.
Can You Get a First-Time Buyer Limited Company Buy-to-Let Mortgage?
Yes — some lenders will allow first-time buyers to purchase through a limited company structure. However, the choice of lenders is smaller, and criteria can be stricter. You may also find minimum income requirements apply, even where personal income isn’t usually considered for standard buy-to-let.
At Strive, we specialise in helping both first-time landlords and limited company investors find the right lender and product.
Do I Need to Own a Residential Property Before I Can Get a Buy-to-Let Mortgage?
With many lenders, yes — they prefer applicants to already be homeowners before taking on a buy-to-let. However, there are still lenders in the market who will consider first-time buyers for buy-to-let, provided you meet their affordability and deposit requirements. The choice is smaller, but it is possible.
Can I Use a Gifted Deposit for a First-Time Buyer Buy-to-Let Mortgage?
Some lenders will allow a gifted deposit, while others won’t. Where it is accepted, lenders usually require the gift to come from a close family member and for a gifted deposit letter to confirm that the money is not repayable. Because rules vary, it’s important to choose the right lender from the outset.
Is It Better to Buy in My Own Name or Through a Limited Company as a First-Time Landlord?
This depends on your tax position, future investment plans, and personal circumstances. Buying in your own name is often simpler and gives you a wider choice of lenders. A limited company structure can be more tax-efficient for some landlords, especially if building a portfolio.
We always recommend speaking with an accountant about the tax side. At Strive, we can then show you the mortgage options for both personal and limited company routes, so you can make an informed decision.
Can I Move Into My Buy-to-Let Property?
If you move into a property with a buy-to-let mortgage, you’ll be in breach of your lender’s terms and conditions. This could lead to your interest rate being increased or, in the worst case, the lender demanding full repayment of the mortgage.
The best step is to speak to your current lender. Explain your situation and ask whether they can switch your mortgage to a residential product. If not, you may need to remortgage with a different lender.
Be aware that if you’re part-way through a fixed-rate deal, switching could mean paying an early repayment charge (ERC).
Speak to an advisor today, to lock you in with the best deal.
Strive, Specialist Buy to Let Brokers
Getting a buy-to-let mortgage as a first-time buyer is absolutely possible — you just need to be aware that the rules are different compared to those for existing or previous homeowners. With the right guidance, you can still take that first step into property investment with confidence.
At Strive, we specialise in buy-to-let mortgages for all types of investors — from first-time buyers to seasoned portfolio landlords. Our team knows the lenders, the criteria, and the best ways to present your application.
Jamie Elvin
Jamie is an expert in all things mortgages, and our most experienced broker. Connect with Jamie and get started to see how Strive Mortgages can help you.
