rates, void periods or a failure to keep a property well maintained, all of which could affect rental income and mortgage repayments. Again, it’s this lack of experience that could make lenders wary about approving a buy to let mortgage application from a first-time buyer first-time landlord. Taxation and financial planning Taxation can often feel like a maze, and understanding the tax implications of rental income, allowable expenses and how to structure finances can be complex for firsttime landlords. Good financial planning ensures that a rental property remains profitable and that taxes are managed properly, so lenders may want to see that applicants have a sound grasp of these fundamentals, as an oversight could lead to financial difficulties further down the line. 11 MORTGAGE NEWSLETTER Although the above is by no means an exhaustive list of all obstacles first-time buyer first-time landlords might face, it does highlight some of the more major difficulties they could meet. It also throws into sharp relief the importance of getting the right support they need when trying to secure that all-important first mortgage. 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. At a time when it’s difficult for many people to get on the housing ladder, supporting those who are willing to invest in buy to let for the first time can only be of benefit to the wider industry. 1Source
RkJQdWJsaXNoZXIy MjI4MjU4NQ==