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Landbay introduces buy-to-let for first-time buyers

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  • 11/01/2018
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Landbay introduces buy-to-let for first-time buyers
Specialist lender Landbay is to offer buy-to-let mortgages to first-time buyers, as more providers allow borrowers who have not owned a home to become landlords.

 

Landbay will consider first-time buyers for property investment loans, as long as they are employed and have a minimum income of £85,000.

The change is designed to help aspiring homeowners get a foot on the housing ladder by investing  in property, according to the lender.

Landbay’s approved distributor partners will offer the lending, which includes 3MC, Atom, Brightstar, Complete fs, Connect Mortgages, Mortgages for Business, TFC Homeloans and Vantage Finance.

 

First-time property buyer landlords a growing market

It comes after Barclays last month extended its buy-to-let products to first-time buyers – to properties let to a tenant and not lived in by the borrower or a family member.

There are around 20 providers that now offer landlord products to first-time property owners.

First-time buyers who purchase buy-to-let property still have to pay stamp duty– but will be exempt from the surcharge.

However, they would not then benefit from the first-time buyer stamp duty exemption if they were to go on to buy a home.

Paul Brett, managing director of intermediaries at Landbay, said: “Landbay is a responsible yet flexible, forward thinking lender and we’re constantly looking at new ways to open up access to aspiring landlords.

“The introduction of buy-to-let mortgages for first time buyers will now give people in a higher income bracket an opportunity to purchase a property and rent it out as a credible investment.

“We are constantly listening to our intermediary partners and to the requirements of the market.

“The last few years have been something of a policy rollercoaster for the buy-to-let market, causing some smaller landlords to exit the market altogether.

“However, ultimately tenant demand shows no sign of letting up, and new landlords are continuing to enter the market despite the more punitive tax regime.

“It’s essential therefore that we help to support a well-served market.”

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