A BTL property (buy-to-let property) is a residential property bought specifically to be rented out to tenants, rather than lived in by the owner, and is usually financed with a buy-to-let mortgage rather than a standard residential one.
Lenders assess BTL property applications differently to residential mortgages, typically focusing on the property’s expected rental income alongside (or instead of) the borrower’s personal income, since the rent is what’s expected to cover the mortgage payments. Deposit requirements for a BTL property are usually higher than for a residential purchase, and lending criteria can vary depending on whether the property is owned personally or through a limited company. If you’re considering a BTL property, an independent mortgage adviser can help you understand which lenders and structures may suit your circumstances.