Barclays Bank has confirmed that it will now accept buy to let (BTL) mortgages for first time buyers and other non-property owners.
This is a welcome move given that virtually all BTL mortgage lenders will only offer BTL mortgages to existing property owners.
This will enable hundreds if not thousands who are not on the property ladder to consider an alternative route to property ownership.
For example, if you live in an expensive area and cannot afford to buy a property, you now have the opportunity to buy in another area and let that property and hopefully build up equity with mortgage payments being covered by rental income.
The usual rules still apply that the borrower or borrowers family cannot live in the property.
Given that many BTL lenders also only accept ‘experienced’ landlords, this offering also offers first time landlords the chance to invest in property
This is a welcome addition, not just to help first time buyers a route onto the property ladder, we also expect other BTL lenders to offer the same.