| Property | Two-bedroom leasehold flat |
|---|---|
| Location | Walthamstow, East London |
| Client | Employed couple who own their home, buying their first rental property |
| Product | Buy-to-let mortgages |
The challenge
The couple had never been landlords, and some lenders restrict or decline first-time landlords. The expected rent was close to the level needed to pass the lender's interest cover test at 75% LTV.
What we did
We focused on lenders that accept first-time landlords who already own their home. We checked the rental figure against local evidence before applying, so the valuer's rent estimate was unlikely to fall short. A five-year fixed product helped the interest cover calculation because many lenders stress five-year fixes at a lower rate. We also explained that buy-to-let for investment is not FCA-regulated and walked them through letting costs and void periods.
The outcome
The mortgage offer came through on the requested loan amount, and the couple completed with a tenant already lined up.
Buy-to-let mortgagesMortgages for landlords buying or remortgaging rental property, in personal names, across the UK.
Learn moreImportant: Most buy-to-let mortgages are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments, and a receiver of rent may be appointed.