Finding a house for some first time buyers is pushing them into doing possibly the unthinkable; act as though they are a landlord.  Ever since the new lending rules went into effect earlier this year, borrowers have resorted to options not once thought of.  Landlords are not scrutinised as much during the lending process as those searching for a residence.  So they are becoming more creative in their approach.  Lenders are becoming more aware of the practice and clamping down on those making such attempts.

Lenders are more relaxed in buy to let situations.  The risk involving the potential to pay a mortgage back falls under a different set of criteria.  Lenders consider the possible rental income compared with personal income.

Ray Boulger, of brokerage John Charcol, commented on the lending process now in place, saying: “Lenders have been cracking down on this since the financial crisis and the MMR just cemented their determination.  Most lenders now also carry out post-completion checks so that even if a residential borrower does manage to slip through the buy-to-let net, there is a strong chance they will be caught out. They’re using tools like the electoral role to see who is living at an address, and checking websites like Rightmove to see if a property is being marketed to prospective tenants.

"Brokers are also wary of this – it's a dead giveaway when someone comes in and says they haven't decided whether to move into their new property or rent it out. That's just not how people buy houses and it's clear they're trying to assess their best mortgage route."