Can you get a buy-to-let mortgage as a first-time buyer?
Some lenders do offer buy-to-let mortgages to applicants who don’t already own a residential property, but options are more limited. Most mainstream BTL lenders require you to own (or be buying) your own home first.
If you’re a first-time buyer looking to go straight into buy-to-let, expect to need a larger deposit (often 25–30%), strong rental income projections, and evidence that you can afford both the BTL mortgage and your own housing costs.
Some lenders do offer buy-to-let mortgages to applicants who don’t already own a residential property, but your options will be more limited. Most mainstream BTL lenders require you to own (or be buying) your own home.
First-time buyer stamp duty
If you’re buying a BTL as your first ever property purchase, you won’t qualify for first-time buyer stamp duty relief — and you’ll pay the additional property surcharge (currently 5%). This is a significant extra cost to factor into your budget.
What are your legal responsibilities as a landlord?
UK landlords have significant legal obligations. Failing to meet them can result in fines, prosecution, or being unable to evict tenants if needed.
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 ongoing costs of property investment. Your mortgage payment is just the starting point.
Typical annual landlord costs
A good rule of thumb is to set aside 20–30% of rental income for ongoing costs, maintenance, and void periods. This ensures you’re not caught out when the boiler breaks or a tenant moves out unexpectedly.
How do you choose the right investment property?
The right property depends on your goals. Are you looking for steady rental income, long-term capital growth, or both? Location, property type, and tenant demand all play a role.
Research rental yields in different areas. Yield is calculated as the annual rent divided by the property’s value, expressed as a percentage. A 5–7% gross yield is generally considered good for a buy-to-let, though this varies by region.
Consider the type of tenant you want to attract. A two-bed flat near a university will suit students or young professionals; a three-bed semi near schools will attract families on longer tenancies. Each has different management requirements and turnover rates.
Setting up your tenancy properly
Getting the paperwork right from the start protects both you and your tenant.
- 01
Use an assured shorthold tenancy (AST)
The standard tenancy agreement in England and Wales. It gives both parties clear rights and obligations. Use a professionally drafted template or instruct a solicitor.
- 02
Conduct thorough referencing
Credit checks, employer references, and previous landlord references help you choose reliable tenants. Many letting agents offer referencing services.
- 03
Create a detailed inventory
Document the condition of the property with photos and descriptions before the tenant moves in. This protects you if there are disputes about the deposit 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 and provide the prescribed information to the tenant.
- 05
Provide required documents
Give the tenant a copy of the EPC, 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 other landlords’ mistakes can save you time, money, and stress.
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 navigate the buy-to-let mortgage process from start to finish. We’ll explain the stress tests, compare products from 90+ lenders, and make sure you understand 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 from a limited company.
Compare buy-to-let deals across the market or contact us for a free, no-obligation chat about your buy-to-let plans.