Can you get a buy-to-let mortgage as a first-time buyer?
A few lenders will offer a buy-to-let mortgage to someone who does not already own a home, but the choice is narrower. Most mainstream buy-to-let lenders want you to own, or be buying, your own home first.
If you are a first-time buyer going straight into buy-to-let, expect to need a larger deposit, often 25–30%, realistic rental income figures, and proof that you can cover both the buy-to-let mortgage and your own housing costs.
A few lenders will offer a buy-to-let mortgage to someone who does not already own a home, but your choice will be narrower. Most mainstream buy-to-let lenders want you to own, or be buying, your own home.
First-time buyer stamp duty
If a buy-to-let is your very first property purchase, you will not qualify for first-time buyer stamp duty relief, and you will still pay the additional property surcharge (currently 5%). That is a sizeable extra cost to build into your budget.
What are your legal responsibilities as a landlord?
Landlords in the UK carry real legal obligations. Miss them and you could face fines, prosecution, or find you cannot evict a tenant when you need to.
Safety certificates
- Annual gas safety check by a Gas Safe registered engineer
- Electrical Installation Condition Report (EICR) every 5 years
- Working smoke alarms on every floor and carbon monoxide detectors where required
Deposit protection
- Tenant deposits must be protected in a government-approved scheme within 30 days
- You must provide prescribed information about the deposit to the tenant
- Failure to protect deposits can result in penalties of 1–3x the deposit amount
Right to Rent checks
- Verify every adult tenant’s right to rent in England before the tenancy starts
- Keep copies of identity documents for the duration of the tenancy
- Penalties for non-compliance can be up to £3,000 per tenant
Energy performance
- A valid EPC rated E or above is required before you can legally let the property
- The EPC must be provided to tenants before they move in
- Government has proposed raising the minimum to C for new tenancies (check current rules)
What costs should you budget for beyond the mortgage?
New landlords often underestimate the running costs of a rental. The mortgage payment is only the starting point.
Typical annual landlord costs
A sensible rule of thumb is to set aside 20–30% of the rent for running costs, repairs and void periods. That way the boiler packing up, or a tenant moving out at short notice, does not catch you out.
How do you choose the right investment property?
The right property depends on what you want from it. Are you after steady rental income, capital growth over the long run, or a bit of both? Location, property type and tenant demand all feed into the answer.
Look into rental yields across different areas. Yield is the annual rent divided by the property’s value, shown as a percentage. A gross yield of 5–7% is generally seen as good for a buy-to-let, though it shifts from region to region.
Think about the tenant you want to attract. A two-bed flat near a university suits students or young professionals; a three-bed semi near good schools tends to draw families who stay for longer. Each comes with its own management demands and turnover.
Setting up your tenancy properly
Getting the paperwork right at the outset protects both you and your tenant.
- 01
Use an assured shorthold tenancy (AST)
This is the standard tenancy agreement in England and Wales, setting out clear rights and obligations on both sides. Use a professionally drafted template or instruct a solicitor.
- 02
Conduct thorough referencing
Credit checks, an employer reference and a reference from a previous landlord help you pick reliable tenants. Many letting agents run referencing for you.
- 03
Create a detailed inventory
Record the condition of the property with photos and notes before the tenant moves in. It protects you if a dispute over the deposit comes up at the end of the tenancy.
- 04
Protect the deposit
Register the deposit with a government-approved scheme (DPS, MyDeposits or TDS) within 30 days, then give the tenant the prescribed information.
- 05
Provide required documents
Hand the tenant a copy of the EPC, the gas safety certificate, the government’s How to Rent guide and the deposit protection certificate before or at the start of the tenancy.
Common mistakes new landlords make
Learning from where other landlords have gone wrong can save you time, money and worry.
Underestimating costs
- Not budgeting for void periods, maintenance, and tax
- Forgetting about stamp duty surcharge and legal fees upfront
- Relying on 100% occupancy to cover the mortgage
Skipping legal requirements
- Not protecting deposits or providing prescribed information
- Missing gas safety or electrical certificates
- Using DIY tenancy agreements that don’t comply with current law
Inadequate insurance
- Standard home insurance doesn’t cover rental properties
- You need specialist landlord insurance including buildings, contents, and liability
- Consider rent guarantee insurance if you’re relying on rental income
Emotional decisions
- Buying a property you’d want to live in rather than what tenants want
- Over-investing in finishes that don’t increase rent or value
- Not treating the investment as a business
Get started with expert buy-to-let advice
At Clearview Mortgage Solutions, we help first-time landlords through the buy-to-let mortgage process from start to finish. We will talk you through the stress tests, compare products from 90+ lenders, and make sure you can see the full picture before you commit. Read the full buy-to-let guide for a deeper walk-through, or look at self-employed mortgages if your income comes through a limited company.
Compare buy-to-let deals across the market, or get in touch for a free, no-obligation chat about your plans.