In the past, a landlord wishing to take out a mortgage on a property for the purpose of producing an income would be viewed by a lender as having a commercial interest. This used to result in higher rates of interest for borrowers seeking to buy to let. However, recent lender policy following general housing market expert consensus, is that the private rental sector should be encouraged to grow as much as possible. The lending criteria have been changed, and interest rates for private investors in property have been lowered under a new buy to let initiative. Buy to let loans are typically available at slightly higher rates than standard owner-occupier mortgage deals.
