Real Client Case: From a First Home with a 10% Deposit to a First Buy-to-Let Property in the UK

Our client Anastasia’s story is another example of how a well-planned approach to finances and property can help someone gradually move from buying their first home to investing in property in the UK.

In just a few years, Anastasia went from buying her first property independently to purchasing a second property with a Buy-to-Let mortgage.

However, her journey did not begin with significant capital or an established property portfolio.

How Did It All Begin?

Anastasia arrived in the UK in May 2022 under the Ukrainian Scheme.

She came alone, without a partner and without substantial savings.

In the UK, she had to build a new life practically from scratch: adapt to a new environment, find employment, and gradually establish financial stability.

Over time, Anastasia found a job she enjoyed and began thinking about buying a home of her own.

She purchased her first property in Scotland independently, using a deposit of just 10% of the property’s value.

This was her first significant step into the UK property market.

Her First Property Was Far from Perfect

The flat Anastasia purchased was in poor condition.

For many buyers, this might have been enough reason to walk away from the purchase.

However, Anastasia saw potential in the property.

After the purchase, the flat was fully renovated. The work significantly improved the property and gave it a new lease of life.

Over time, Anastasia set herself a new goal: to explore how the property she already owned could help her take the next step.

This was when she approached our team.

Remortgage and Further Advance: The Next Step

At the beginning of this year, we helped Anastasia arrange a remortgage with a Further Advance.

What does this mean?

A remortgage involves refinancing an existing mortgage. Depending on the client’s circumstances, this may allow them to review their current borrowing arrangements or move to a different mortgage product.

A Further Advance, on the other hand, may allow a homeowner to borrow additional funds from their existing lender, secured against their property, provided both the borrower and the property meet the lender’s criteria.

In Anastasia’s case, the additional funds provided the financial foundation for her next step: purchasing another property.

It is important to understand that the ability to access additional borrowing depends on several factors, including:

• the property’s current value;
• the outstanding mortgage balance;
• the client’s income;
• existing financial commitments;
• the specific lender’s criteria.

Every situation is assessed individually.

How Did Anastasia Find Her Second Property?

The next stage of Anastasia’s journey was quite unusual.

She already knew the building where her first flat was located very well and wanted to purchase another property in the same development.

So, she decided to take a direct approach.

Anastasia posted a message in the residents’ group chat saying that she would be interested in buying another flat in the building.

Unexpectedly, one of her neighbours replied to say they were considering selling their property.

This created an opportunity to purchase a second property off-market, before it was listed for sale on the open market.

The parties were able to discuss the terms directly and agree on a purchase price.

The next important stage was arranging the necessary finance.

Her First Buy-to-Let Mortgage

Once the property price had been agreed, our mortgage broker, Yulia Shchekina, carefully reviewed Anastasia’s circumstances and prepared the mortgage application.

As a result, we successfully secured Anastasia’s first Buy-to-Let mortgage.

A Buy-to-Let mortgage is designed for purchasing a property that the owner intends to rent out.

The lending criteria for this type of mortgage differ from those for a standard residential mortgage.

A lender may consider factors such as:

• the size of the deposit;
• expected rental income;
• the value of the property;
• the applicant’s financial circumstances;
• whether the applicant already owns other properties;
• other individual circumstances.

This is why, before purchasing an investment property, it is important to understand what financing options may be available based on your specific situation.

From Her First Home to Owning Two UK Properties

Today, Anastasia works in an estate agency in the lettings department and already owns two properties in the UK.

Her journey began with her first property, purchased with a 10% deposit.

This was followed by renovating the property, arranging a remortgage with a Further Advance, and purchasing a second property with a Buy-to-Let mortgage.

Of course, one client’s experience does not mean that the same journey or outcome will be possible for everyone.

However, this example demonstrates the importance of viewing property ownership as a long-term process and planning future financial steps carefully.

What Can We Learn from Anastasia’s Story?

Anastasia’s experience highlights several important points.

You do not always need to start with significant capital.

In some circumstances, purchasing a first property may be possible with a relatively small deposit, provided the applicant’s financial circumstances meet the lender’s criteria.

A property that requires renovation is not automatically a bad purchase.

However, before buying such a property, it is important to carefully assess renovation costs, the condition of the property, and any potential risks.

A property you already own may create new financial opportunities.

In certain circumstances, a remortgage or Further Advance may provide options for achieving future financial goals.

Property investment requires a different approach.

Buy-to-Let mortgages have their own lending criteria, so it is important to assess available financing and potential rental income before making a purchase.

Sometimes opportunities appear in unexpected ways.

Anastasia’s second property had not even been listed on the open market. A simple message to her neighbours helped her find a suitable property directly.

Why Is a Long-Term Strategy Important?

Buying your first property can mean more than simply becoming a homeowner.

For some people, it may also become the first step towards long-term property investment.

However, every next step requires careful consideration.

Before arranging a remortgage, applying for a Further Advance, or purchasing a Buy-to-Let property, it is important to consider:

• your current financial circumstances;
• available capital;
• potential costs;
• tax obligations;
• potential rental income;
• the risks associated with property investment.

A good property strategy does not begin with the number of properties you own. It begins with a clear understanding of your financial circumstances and goals.

We congratulate Anastasia on this important achievement and thank her for trusting us.

We are particularly pleased that she chose to work with our team again when she was ready to take the next step.

We would also like to thank our mortgage broker, Yulia Shchekina, for her professionalism, attention to detail, and commitment to finding the right solution for our client.

For us, every mortgage is about more than submitting an application to a lender. It represents an important stage in a client’s life and an opportunity to help them move closer to their financial goals.