What is a buy-to-let?

A buy-to-let mortgage is a loan for purchasing a residential property that is let to tenants rather than lived in by the borrower. The typical deposit required is likely to be around 25%, although better deals will be available to those who can put down as much as 40% of the purchase price. Most buy-to-let mortgages are available on an interest only basis. Lenders will consider the potential rental income the property will generate when deciding whether to grant the loan. A Buy-to-Let mortgage will be secured against your property.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.