There are a lot of people who want to become landlords and invest for their future. There are many ways in which they can do this, and the question below from Yvonne is asking about using a Special Purpose Vehicle (SPV) for their first property. <hr /> <h4>Question</h4> <i><span style="font-weight: 400;">Hi Pete,</span></i> <i><span style="font-weight: 400;">I’m hoping to become a landlord and was thinking of setting up a </span></i><a href="https://www.onlinemortgageadvisor.co.uk/buy-to-let-mortgages/spv-mortgages/"><i><span style="font-weight: 400;">specialist purpose vehicle (SPV)</span></i></a><i><span style="font-weight: 400;"> to purchase my first buy-to-let property. I understand that there are tax advantages to doing this and I may be able to borrow more.</span></i> <i><span style="font-weight: 400;">The only issue I can see is that I might not be able to get an SPV mortgage as a first-time buyer. Is this likely to be the case? A friend of mine who’s in the landlord business told me that these mortgages can be complicated and aren’t usually offered to newbies.</span></i> <i><span style="font-weight: 400;">Thanks in advance,</span></i> <i><span style="font-weight: 400;">Yvonne, Cardiff</span></i> <h4>Answer</h4> <span style="font-weight: 400;">Hi Yvonne,</span> <span style="font-weight: 400;">Many thanks for contacting us. I can certainly help you out here. Your friend is right in thinking that SPV mortgages can be more complicated than the regular kind, and while some lenders won’t even entertain the notion of offering one to a first-time landlord, there are specialist buy-to-let mortgage lenders out there who can be more flexible.</span> <span style="font-weight: 400;">Your lack of experience in the BTL sector will be seen as a risk, but there are ways you can offset this risk. Most BTL mortgages require a deposit of at least 15%, but if you’re able to put down more than the minimum, your chances of approval will increase.</span> <span style="font-weight: 400;">As a first-time buyer, most lenders will expect you to have personal income as well as enough projected rental income from the property you’re buying to cover the mortgage. There’s also a possibility that the interest rates you’re offered will be higher than what an experienced landlord could get, but a favourable deal is certainly possible.</span> <span style="font-weight: 400;">I’d suggest speaking to a specialist BTL mortgage broker before you apply. An advisor with the right expertise can help you increase your chances of finding a flexible buy-to-let lender who’s comfortable offering SPV mortgages to first-time buyers.</span> <span style="font-weight: 400;">Best of luck,</span> <span style="font-weight: 400;">Pete</span> <hr /> I answer more questions about SPVs which you can see below: <ul> <li><a href="https://www.onlinemortgageadvisor.co.uk/buy-to-let-mortgages/spv-mortgages/should-i-use-an-spv-to-expand-my-buy-to-let-portfolio/">SPV to expand a buy-to-let portfolio</a></li> <li><a href="https://www.onlinemortgageadvisor.co.uk/buy-to-let-mortgages/spv-mortgages/can-i-get-an-spv-mortgage-if-i-have-bad-credit/">Getting an SPV whilst having bad credit</a></li> <li><a href="https://www.onlinemortgageadvisor.co.uk/buy-to-let-mortgages/spv-mortgages/can-i-get-a-semi-commercial-mortgage-through-an-spv/">Semi commercial mortgage using an SPV</a></li> </ul>
