Our client, a first-time buyer, was looking to grow their savings by investing in a buy to let property. With no prior experience and affordability challenges linked to their buyer status, discover how MFB’s early preparation and whole-of-market access helped secure a competitive mortgage offer in 12 working days.
At a glance:
- A first-time buyer and landlord seeking to invest in a buy to let property
- A standard family/professional let in the North West of England
- Faced affordability assessment challenges due to first-time status
The Case
Our client was a first-time buyer and first-time landlord referred to us by a long-standing client. With a solid deposit saved and free accommodation provided by their employer, they were in a strong position to begin their property investment journey. They aimed to make their savings work harder by acquiring a buy to let property.
Over several detailed conversations, we built a strong relationship, helping them understand the mortgage process and refining their investment strategy. Fortunately, their close relationship with the introducer made them well-informed about the local property market and expected yields.
The Challenge
As a first-time buyer and landlord, many lenders typically assess affordability based on the applicant’s personal income, rather than the rental income. This is because lenders are often suspicious that first-time landlords who don’t own their own home will move into the investment property, rather than rent it out. This cautious approach can be a significant hurdle for new investors, especially when securing competitive terms.
Thanks to our whole-of-market access, we identified a lender willing to assess the application based purely on rental income. This was crucial in securing the deal because it enabled our client to borrow the amount they needed to secure their desired property.
We completed the application form and gathered all necessary documentation before our client had found a suitable investment property, meaning we could act quickly when it mattered. In a competitive market, speed is essential as estate agents often require proof of funding to submit an offer. Once our client had found a property, we produced a Decision in Principle (DIP) within 3 hours of their bid, giving them a significant advantage.
The application progressed smoothly, moving from submission to formal mortgage offer in 12 working days. This swift turnaround enabled the client to confidently secure their first investment property with a competitive mortgage solution tailored precisely to their goals.
The Finance
Property value: £275,000
Loan amount: £195,000
LTV: 71%
Rate: 5.27%, 5-year fixed*
Term: 25 years, interest-only
Monthly mortgage payment: £873
Lender arrangement fee: 2% (£3,900)
Rental income: £1,350
Gross yield: 6%
*Rates as at May 2025
Have a similar case?
If you have a similar case you would like to discuss, get in touch, and one of our expert mortgage brokers will be happy to advise.
