First-Time Landlords Guide

First-Time Landlords Guide

First-Time Landlords Guide | Becoming a first-time landlord can be a rewarding step into property investment. This guide explains how first-time landlord mortgages work, what lenders look for, and how you can prepare for your first buy-to-let purchase. With support from Connect Brokers, new landlords can access expert advice and a wide range of lenders to grow their property portfolio.

What Is a First-Time Landlord Mortgage

A first-time landlord mortgage is a type of buy-to-let loan designed for people who want to rent out a property for the first time. These products are aimed at new investors who have never owned or managed rental property before. Lenders use a different set of checks for first-time landlords because you do not yet have a track record in the rental market.

Most lenders will accept first-time landlords as long as you meet their criteria. Some providers prefer applicants with letting experience, while others welcome new landlords if the rental income, deposit and overall financial profile are strong. This is why many first-time investors choose to work with a specialist mortgage broker, as it helps match you to lenders who are comfortable supporting beginners.

Unlike standard residential lending, a first-time landlord mortgage is assessed on the expected rental income rather than your personal income. Lenders focus on rental yield, affordability checks, property type, and EPC rating. They will look at how well the rent covers the mortgage payments and whether the property is suitable for long-term lets. A strong rental coverage ratio and a clear understanding of landlord responsibilities can make it easier to secure the right deal.

These mortgages suit people who are planning to grow a property portfolio, generate rental income, or invest through routes such as buy-to-let or limited company structures. To explore how these criteria work in practice, see the Buy to Let Mortgages guide and the Limited Company Buy to Let page for more options used by new and experienced landlords.

Mortgage Criteria for First-Time Landlords

Lenders assess first-time landlords using several key checks:

  • Rental yield and expected monthly rent

  • Minimum deposit requirements

  • Affordability checks against personal income

  • Credit history and overall financial profile

  • Property type, condition and EPC rating

  • Experience in the rental market, even if informal

Most lenders want to see strong rental coverage, typically based on a stress test of the expected rent. A typical benchmark is that rental income should exceed the mortgage payment by a set ratio. This helps ensure that the rental income covers costs, void periods and potential rate changes.

Deposits, Rental Income and Affordability

Deposit Requirements

First-time landlords typically need a minimum of 20 to 25 per cent deposit. Some lenders may request more, depending on the property type, rental income, or credit profile. A higher deposit can improve your rates and increase lender choice.

Rental Income Assessment

Lenders calculate affordability based on the expected rental income rather than your salary. They will consider:

  • Local rental market conditions

  • Property size and type

  • Yield and rental coverage

  • Letting potential and property demand

Higher rental yields often lead to better mortgage options. You can learn more about affordability and rental calculations in the Limited Company Buy-to-Let guide, which applies similar principles.

Tips for Buying Your First Rental Property

Choosing the right property is vital for long-term success. First-time landlords should consider:

  • Expected rental yield and long-term demand

  • Condition and maintenance costs

  • Local tenant profiles

  • EPC requirements and safety standards

  • Potential tax on rental income

  • Void periods and contingency planning

Working with letting agents can help you understand tenant demand in the area. This supports better financial planning and reduces the risk of extended void periods. If you would like guidance on protecting your rental property, visit the Landlord Insurance guide.

Essential Responsibilities for First-Time Landlords

Before completing your purchase, it is important to understand your legal responsibilities. These may include:

  • Energy performance certification

  • Gas and electrical safety checks

  • Deposit protection rules

  • Tenancy agreements

  • Regular property maintenance

Staying compliant protects your tenants and your investment. If you grow your rental portfolio in the future, compliance becomes even more critical, especially when remortgaging. See Remortgage Your Rental Property for more information on the process.

How Connect Brokers Helps First-Time Landlords

Connect Brokers supports first-time landlords through:

  • Access to a wide lender panel

  • Guidance on rental income assessments

  • Support with affordability and documentation

  • Advice on choosing the right mortgage structure

  • Help navigate EPC rules and regulatory obligations

  • Ongoing support for portfolio landlords

Our advisers understand the challenges new landlords face. Whether you want your first buy-to-let mortgage or plan to grow into a whole rental business, we can guide you through each step.

Mortgage brokers who want to specialise in supporting landlords can learn more through Join Connect Network.

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FAQ |  First-Time Landlords

Question Answer
What mortgage can a first-time landlord get? Most new landlords can access standard buy-to-let mortgages as long as rental income meets the required coverage and the deposit meets lender criteria.
How much deposit do first-time landlords need? Most lenders require a 20 to 25 per cent deposit. A larger deposit can unlock better rates and increase lender choice.
Can a first-time buyer get a buy-to-let mortgage? Some lenders accept first-time buyers as first-time landlords. Criteria may be tighter, and stronger rental coverage may be required.
What rental income do lenders look for? Lenders assess expected rent using a stress test to ensure rental income covers interest payments, maintenance costs and potential rate rises.
Do first-time landlords need personal income to qualify? Some lenders want evidence of stable personal income even for buy-to-let mortgages, while others focus mainly on rental income and property yield.
Can first-time landlords use a limited company? Yes. Many first-time landlords choose a limited company structure for tax planning and long-term portfolio growth. Criteria may differ from personal buy-to-let.
What property types can first-time landlords buy? Most lenders accept standard buy-to-let properties. Flats above shops, HMOs and holiday lets may require specialist lenders or higher financial strength.
How important is credit history for first-time landlords? Credit history plays a role in lender decisions. A clean credit profile improves access to competitive rates, but specialist lenders may accept some issues.
Do lenders require landlord experience? Many lenders do not require previous landlord experience. They focus on rental yield, deposit size and affordability instead.
Can a first-time landlord remortgage later to grow their portfolio? Yes. Once rental income is proven, remortgaging can release equity to help fund additional investment. See Remortgage Your Rental Property for more information.
Are there extra costs first-time landlords should plan for? Yes. Consider letting agent fees, insurance, repairs, void periods, tax on rental income and compliance requirements such as EPC and safety checks.
Do first-time landlords need landlord insurance? While not legally required, landlord insurance is strongly recommended to protect against damage, loss of rent and liability claims. See Landlord Insurance for more details.