UK: Barclays to offer buy-to-let mortgages to first time buyers

Barclays has begun offering buy-to-let mortgages to individuals who do not own any property, meaning first-time buyers will be able to purchase investment properties to let out, rather than live in.

Barclay believes that the new product will help younger consumers who live in expensive areas, such as London, get on the property ladder by letting them purchase an investment property in a cheaper region, while they continue to live and rent in a more expensive area. This will enable them to earn rental income as well as benefit from any growth in house prices, rather than being completely locked out of the property market by prices in their area.

The move by Barclays looks to address a real need in the market, with RFi Group data showing that 14% of First Time Buyers believe that now is not a good time to buy a property because prices are too high. This offer could give these potential homebuyers a new avenue onto the property ladder.

Barclays joins NatWest and a number of smaller providers in offering this product to first-time buyers.

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