First Time Buyer Buy to Let (BTL).

Posted on 18 September 2011 by Waty

Hi, we are considering to buy a house to let worth aroung £170k. We currently have a saving of £45k. Can we be considered as a first time buyers as we don't have any property yet or do we have to go to buy to let route?


The £250,000 Stamp Duty Land Tax (SDLT) threshold for first time buyers buying their first property only applies if you are buying your first residential property.  If you are buying a property to let you will not receive this exemption and SDLT will be payable at a rate of 1% on the whole purchase price.

With regards to obtaining a mortgage you will definitely be looking at BTL products.  With a deposit of £45k you will have a good choice of different mortgage types and rate, although the final choice might be determined by the anticipated rental income rather than loan to value.  As a guide you can expect your monthly rent to cover 125 - 130% of the monthly mortgage payment and the reason for this is to allow you to build up a reserve to cover unexpected outgoings, such as property repairs and rental voids.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to advise you on your situation.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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