If you’re struggling to get on to the property ladder in your area, you might be considering buying an investment property elsewhere and letting it out.
The good news is that it is possible to get a buy-to-let mortgage as a first-time buyer – but it’s not necessarily easy.
For example, you might need a bigger deposit than other investors to get a good deal, as the number of mortgages available to you may be significantly smaller.
You’ll also be giving up on some benefits available to first-time buyers – especially when it comes to stamp duty. This is because, if your first property isn’t one that you will live in yourself, you won’t qualify for first-time buyer relief.
On the plus side, as a first-time buyer you’ll only have to pay regular stamp duty rates – and will escape the 3% surcharge usually levied upon buy-to-let investors.
But if, at a later date, you end up buying a property to live in while hanging onto your buy-to-let property, you’ll have to pay the surcharge.