A New Buy to Let Mortgage Gifts First Time Buyers a Lifeline

First time buyers who are really struggling to save a deposit to purchase a UK property have an opportunity to take advantage of a new buy to let mortgage product to generate instant equity in rental property without the need for any investment capital.

Until very recently, it has become increasing difficult for first time buyers to get a foothold on the property ladder in the UK. Due to the rapid increase in house prices over recent years, more and more first time buyers are finding it almost impossible to raise the deposit required for a regular residential mortgage.

But why take the risk of an overseas investment when you achieve instant equity in property closer to home. This buy to let mortgage product is extremely attractive to both investors and first time buyers, as it provides an opportunity to invest in the UK property market at zero cost.

However, by negotiating a 15% discount on any new build or second hand property, first time buyers can get 'Builders Deposit (new-build property)' or 'Gifted Deposit (second hand property Buy To Let Mortgages without investing a single penny as a deposit, using the discount to finance 100% of the purchase price.

So how does this help a first time buyer secure a residential mortgage?

Simple. Instead of using savings and borrowed finance to scrape together a deposit, the first time buyer need only negotiate a 15% discount off the market value of a property which can be rented out to cover the mortgage payments.

Subsequently, there is an immediate 15% equity in the house which is likely to increase over time as property prices rise. The funds can be released by selling at a later date which can be used as a deposit on a regular residential mortgage.

James Grantworth Marketing Director Of Let Mortgages is convinced that this investment vehicle has mass appeal to first time buyers in the UK and said, "Due to the high cost of entry into the UK property market, some first time buyers have resorted to purchasing cheaper rental property abroad with a view to reselling the property at a later date and using the profits for a deposit on a UK property."

He continued, "But why take the risk of an overseas investment when you achieve instant equity in property closer to home. This buy to let mortgage product is extremely attractive to both investors and first time buyers, as it provides an opportunity to invest in the UK property market at zero cost."

Whether you are a first time buyer, a current landlord or an individual looking to buy your first buy to let property, it really does not matter, as you can now reduce the risk of investing without having to use your own funds as a deposit.

For independent advice and further information about Builders and Gifted Deposit Buy To Let Mortgages or any other kind of Buy To Let Mortgages, contact Let Mortgages Limited on Tel: 0845 873 7495 or visit www. letmortgages.com