What is buy-to-let?

It’s when a property is bought to rent out to somebody else.

You can use a specific buy to let (BTL) mortgage to purchase the property. This means you can buy property as an investment without needing to save up the full amount to buy it outright. 

You then let out the property and  act as the landlord to your tenants. You charge them rental payments to cover the mortgage and your other costs.

Why do I need to a buy to let mortgage?

Because they are different from standard residential mortgages. If you intend to buy a property and let it out, you need a buy to let mortgage.

A key feature of buy-to-let mortgages is that, rather than just looking at your income and salary, the lender looks at the potential rental income of the home when deciding how much you can borrow.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. Some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority.