Uk house prices have risen rapidly over the last few years and this has had a huge impact on the number of first time buyers who are in a position to secure a mortgage. The deposit which is now required for a first time buyer to get a foothold on the UK property ladder has become almost impossible to raise for the majority of buyers who are subsequently forced into rental accommodation without the hope of every owning a property.



It has been known for first time buyers to purchase cheaper rental property abroad with the idea of reselling the property a few years down the line and use the estimated profit as a down payment for a UK property purchase.

The introduction of the Builders Deposit Or Gifted Deposit Buy To Let Mortgage has created a much more attractive alternative.

A Builders Deposit Or Gifted Deposit Buy To Let Mortgage is a recent product aimed at investors who are looking to build their property portfiolios quickly and at the minimum of capital investment and is available to first time buyers

A 15% builders deposit or gifted deposit buy to let mortgage provides 100% finance for buy to let investment property purchases if the buyer negotiates a 15% discount of the market value of the property. The buyer does not need to invest any capital into the property as the 15% discount is in effect the deposit on the mortgage.

This product has opened the door to first time buyers who are unable to raise the deposit for a residential mortgage. If the first time buyer can negotiate a 15% discount off the actual market value of the property then there is no further need to invest borrowed money or personal savings into the property. They can subsequently let the property to cover the mortgage payments. There is an immediate 15% equity in the property. This will likely to increase over time as house prices inflate and the equity can be released at a later date to use as a deposit on a regular residential mortgage.

These mortgages are proving extreemely popular with investors as there is no need to tie up capital, which can be used in other investment opportunities. The rental assessment is based upon 100% of the monthly mortgage payment so qualification is very straightforward unlike many other mortgage products which sometimes demand a 125% or even 130% rental coverage.

You can still obtain this type of mortgage for the investment even if it does not qualify. All you need to do is check that you have sufficient salary and outgoings to make up the mortgage shortfall and you may proceed.

Whether you are 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.