What is a buy to let mortgage?
A Buy to Let mortgage refers to a loan that is used to purchase property in order to let it out. A buy to let mortgage is typically interest-only, and available up to 85 per cent of the value of the investment property. A single buy to let loan may be used to purchase more than one property.
The benefits of Buy to let mortgages
Buying a property to let can benefit the private landlord in two ways. Firstly, it can provide a stream of income. Secondly, many Buy to Let landlords purchase property because of the potential for long-term accumulation of capital growth. This section provides guidance about how to take out a successful buy to let mortgage, the pitfalls that may occur and the knowledge needed to avoid them.