Mortgage & renting out property

Hi, I am looking into the possibility of buying a first time house / apartment with a friend of mine just to get on the ladder.
However I don't intend living in it myself, I would rent it out and let my friend choose whoever she wants to live with etc. But financially it might not be the best time for me to apply for a mortgage, I would be able to afford repayments alright, but it would be more ideal if i wasn't paying off loans etc for the next 8 months or so.

Anyway the question I have is, whe applying for a mortgage would they take into account that I don't intend to live in the house myself and I intend to rent it out or would this have no impact on the application at all?

This is essentially a Property Investment query so has been moved from Mortgages and Buying and Selling Homes. What you are talking about is buying an investment property as your first property purchase. You need to be aware of the tax (e.g. investor stamp duty on purchase, rental income tax, CGT on any eventual resale gain, ineligibility for owner occupier mortgage interest relief although eligibility to offset mortgage interest against rental income etc.) and other issues that arise in this situation. Check out the Property Investment FAQ and threads in this forum for more on this. Some (many?) lenders may be reluctant to lend to a first time buyer who wants to buy an investment property rather than an owner occupied PPR as their first purchase.

Jessie03 said:

Hi, I am looking into the possibility of buying a first time house / apartment

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House prices are back 3.9% nationally this year to date. May not be the best time to invest.

Keep in mind that interest rates for residential investment properties are not as low as those for private dwelling homes, with one or two exceptions! And of course there are tax and stamp duty considerations!