The reality of BTL can be very different to what you first imagine, warns mortgage expert
This article was created in partnership with Chetwood Bank.
For first-time landlords, entering the buy-to-let market can feel like stepping into an obstacle course. With so much to take into consideration, it can be easy for those wanting to take their first step in the rental market to overlook the first hurdle that must be overcome – securing the buy to let mortgage needed to make the purchase in the first place.
Chantel Ford, Intermediary Sales Development Manager at Chetwood Bank, is clear on the challenges facing this demographic.
“First-time landlords often assume that securing a buy-to-let mortgage is similar to getting a residential mortgage. The reality, however, can be very different,” she told Mortgage Introducer.
Many new landlords come into the market without owning a residential property, making them, in Ford’s words, “an unknown quantity for many lenders.” Here, Ford explained that this lack of experience can be a red flag for lenders, who are often hesitant to approve mortgages without a track record.
"Buy-to-let mortgages often require a larger deposit," she said. "Without existing equity in another property, it can be harder for them to raise the required deposit. It’s a classic Catch-22 situation."
This mismatch between assumptions and lender expectations can leave new landlords at a disadvantage before they've even started. For brokers and lenders alike, Ford believes the solution lies in better-tailored products.
“Lenders can support new landlords by offering entry-level buy-to-let products with more flexible criteria - such as reduced experience requirements. Simplified application processes, clear guidance and access to dedicated support can also flatten out the learning curve.”
‘Taxation can feel like a maze’
Compliance is another high-stakes issue that can easily trip up first-time landlords.
“There are around 170 rules and regulations that must be adhered to,” Ford noted, citing everything from health and safety standards to tenants’ rights. The volume and complexity of requirements can overwhelm even the most motivated buyers. Add to that the intricacies of tax law, and things can quickly get complicated.
“Taxation can also feel like a maze, and understanding the tax implications of rental income, allowable expenses and how to structure finances can be complex for first-time landlords. First-time buyer first-time landlords need extra education, guidance and understanding from brokers and lenders. A pragmatic approach to their needs, combined with a willingness to lend, can help them to meet their buy to let ambitions.”
How lenders can help landlords play the long game
Long-term success often depends on the support landlords receive after the deal is done. Ford believes this is where many lenders can differentiate themselves.
“First-time landlords would benefit from tailored support that goes beyond just providing them with the buy-to-let mortgage they need,” she said.
She pointed to educational guides, webinars and post-completion check-ins as practical tools that can make a real difference.
“Providing post-completion check-ins to find out how things are going or if they need any further support not only helps landlords avoid costly missteps, but also builds lasting trust between lenders and borrowers,” she finished.
The first step onto the property ladder as a landlord shouldn’t feel like a leap into the unknown. With the right combination of flexible finance, educational resources, and empathetic guidance, the market can do more than just accommodate first-time landlords - it can empower them. By listening to their needs and offering clear, practical support, the lending industry can help new landlords not only survive but thrive.
Find out how Chetwood can help you and your clients here.
