First-time buyers will no longer have to own a residential property in order to access finance from Barclays to invest in the buy-to-let market, after the bank extended its buy-to-let range to enable applications from those acquiring their first property and non-owner occupiers.
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 a property to rent out as an investment in a more affordable part of the country.
Very few lenders currently lend to first-time buyers on buy-to-let.
Ray Boulger, senior technical manager at 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 investment 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.”