If you want to buy a property that you plan to put on the rental market, you won’t be able to fund the investment using a standard residential mortgage. If you do need a mortgage to finance the purchase of the investment property, you’ll need a Buy to Let mortgage, also known as a BTL mortgage.
A BTL mortgage is a specific type of mortgage that is taken out to purchase investment property rather than a home to live in. They are often taken out by individuals or limited companies set up to hold investment property. There are different types of Buy to Let mortgages, just as there are different types of residential mortgages such as the different fixed-rate or variable-rate products.
Investing in BTL properties has a long-standing appeal because the property is considered a safe investment over the long term. Even though property values can dip over many years and decades, the majority of property values will increase at a greater rate than inflation. This guide will explain the fundamentals of Buy to Let mortgages and the process for those who are new to property investment.