Barclays bank has extended its range of buy-to-let mortgage products to permit applications from buyers seeking to acquire their first property.
Investors will therefore no longer have to already own a residential property in order to access the finance to invest in the buy-to-let market. The move is designed to provide first-time buyers with an alternative means of getting onto the property ladder, allowing those living in areas with high property prices, such as London, to buy an investment property in more affordable parts of the country.
At present, very few lenders currently offer finance to first-time buyers on buy-to-let.
Ray Boulger, senior technical manager at Independent Mortgage Brokers, John Charcol, told the press: “It is certainly a helpful move, because it widens the opportunities for people who want to buy a property but either can’t afford to buy in the place where they want to live or perhaps don’t want to buy a place to live in because they anticipate not staying in one place long enough but want to have a stake in the property market.”
Non-owner occupiers seeking to re-mortgage an existing property have also been given access to the lender’s buy-to-let range.
A Barclays spokesperson said: “Barclays is a responsible lender and we’re always looking at ways to innovate and open up access to home buying. First-time buy-to-let will give someone who does not have a mortgage an opportunity to get onto the property ladder.”