Buy to Let

A mortgage designed for people buying property with the intention of renting it out to tenants.

A personal Buy to Let is held in your own name, while a limited company Buy to Let is owned and mortgaged through a company, usually for tax reasons and after advice from an accountant.

You'll need a strong credit score, to already be a homeowner, meet a minimum salary requirement, and usually provide at least a 25% deposit, though some lenders accept less.

Borrowing is based on the property's potential rental income rather than your salary, with lenders applying a rental 'stress test'; maximum borrowing is usually around 75%.

Costs include the deposit, survey and lender fees, solicitors' costs, broker fees, and an additional three percent stamp duty surcharge for owning more than one property.

Yes, you need a Buy to Let mortgage, or to buy with cash; renting out a property on a residential mortgage without the lender's permission breaches your mortgage terms.

Most landlords choose interest-only to keep monthly payments lower, though the right choice depends on individual circumstances.

As many as you can fund; once you own four or more properties you're classed as a portfolio landlord, which limits you to a smaller group of specialist lenders.