Buy-to-let mortgages are similar to residential options, just with a few differences. Their primary reason for existing is so you can borrow a portion of the money required to buy a property and then let it to a tenant via the rental market.
A buy-to-let mortgage usually requires a higher deposit than a residential mortgage, and the interest rates associated with the loan also tend to be higher. Most buy-to-let mortgages are borrowed on an interest-only basis, meaning you pay back the interest but not the capital (more on that later). The fees are usually more expensive than a conventional mortgage.
Most buy-to-let mortgages have a term of 25 years, though it can be longer or shorter depending on your requirements. Within that length, there is a fixed or tracker term, which usually lasts for two, five or even 10 years. We’ll cover the differences between fixed and tracker mortgages in a bit.