A buy-to-let mortgage is a mortgage designed for purchasing a property that will be let out to tenants, rather than lived in by the borrower. It works differently to a residential mortgage in how affordability is assessed and how the loan itself is structured.
Most buy-to-let mortgages are arranged on an interest-only basis, with lenders primarily assessing the rental income the property is expected to generate rather than relying solely on the borrower’s personal income. Deposit requirements are generally higher than for a residential mortgage, and some lenders have specific criteria around minimum income, landlord experience, or property type. Whether you’re an experienced landlord or considering your first buy-to-let mortgage, speaking to an independent broker can help you compare the options available across the whole market rather than a single lender’s range.