1st Time Buyer BTL - cash then remortgage?

[adamw]

Hi there - first time buyer here looking to begin a BTL portfolio (as a limited company) without buying a main residence first (plenty of detail as to why in the 'Newbie' section!). The main issue mortgage-wise appears to be access to the best rates as a FTB and first time landlord, as a SPV.

Question: If I was to purchase a property with cash (via an SPV), let it out, then 'remortgage' (unencumbered remortgage?) after 6 months to release 60% the equity, would this effectively leave me in the same position as getting a 60% LTV mortgage at point of purchase, but open up more (and cheaper) mortgage options as we wouldn't be first time buyers or first time landlords after 6 months?

Any thoughts here?

[Nathan Cole]

Hi @adamw

Lenders definitions of 'First-time Buyers, First-time Landlords' do vary, but yes, in some instances purchasing the property with cash first could potentially open up the market somewhat after 6 months (Dependant on your personal circumstances). 

With regards to lenders definitions varying, some lenders will still class you as a 'First-time Landlord' until you have 12 months lettings experience, so it is certainly worth exploring your options and lining up a potential onward mortgage, before you proceed with any cash purchase.  

I hope this is helpful, but please do let me know if you have any questions. Always happy to help.

Best regards 

Nathan Cole