“You’d be forgiven for thinking you are “falling behind” when social media acts as a conveyor belt of Swiss watches, Italian cars and 5 star holidays, all from the proceeds of property and entrepreneurship,” Corbett said.
“But buy-to-let is not simply a residential mortgage with tenants attached. It is a commercially assessed, tax-sensitive and increasingly scrutinised form of borrowing.”
Corbett added that younger prospective clients often arrive with misconceptions about buy-to-let borrowing. “I thought I could get a mortgage with a 5% deposit,” he said, describing the most common misconception he hears. “Can’t I just use a mortgage from a comparison site?”
The finance broker explained that buy-to-let borrowing “typically require a larger deposit, in the region of 20-25%”, and that comparison sites do not reflect an applicant’s individual circumstances or lender criteria. The wider cost structure can also be overlooked, with fees for applications, valuations and legal work affecting the total cost and projected yield.
For young investors, lender assessment can quickly move beyond the headline rate. Corbett pointed to the importance of understanding interest coverage ratios, stress rates and rental calculations, and the role of alternative short-term funding such as bridging finance where a strategy needs flexibility. He also noted that lender appetite varies for specialist cases, including loans below £75,000, properties above commercial premises and non-standard construction.