The Property Podcast ASK487: Should I invest instead of buying a home? PLUS: Is this ground rent a dealbreaker?
Jul 29, 2025
Rob & Rob tackle some pressing questions from listeners. A first-time buyer is curious about using a residential mortgage for investment and the challenges that come with it. They discuss the importance of transparency with lenders and getting expert advice. Another listener faces obstacles with a London property due to an unregulated ground rent clause, raising concerns for his lender. The duo highlights the need for professional guidance to navigate potential pitfalls in property deals.
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First-Time Buyer Mortgage Advice
- Avoid pretending to live in a property to get a residential mortgage if you intend to rent it out; this is risky and can harm future lending opportunities.
- Consider living in the property initially or consult an experienced mortgage broker to explore legitimate options.
Use Mortgage Brokers for Better Deals
- Speak to an experienced mortgage broker to find available mortgage options as a first-time landlord.
- Expect higher short-term mortgage rates but plan for better refinancing options after owning property for a few years.
Handle Ground Rent Risks Carefully
- Consult your mortgage broker to check lender perspectives before accepting ground rent terms without limits.
- Aim to get a deed of variation to cap ground rent increases; negotiate fees carefully and weigh deal viability before proceeding.