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1st Time Buyer BTL - cash then remortgage?


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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?

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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

Nathan Cole CII (MP)

Mortgage Consultant at Private Finance

Office: +44 (0)1743 211 855

Email: nathan.cole@privatefinance.co.uk

Website: www.privatefinance.co.uk

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