A buy-to-let mortgage (also known as an investment mortgage) is designed for borrowers who want to let their property out to a third party (ie. tenants).

More and more people are investing in property as a long-term opportunity to make profitable returns, and as a way of securing finance.

There are now plenty of competitive mortgage deals around that are specifically aimed at the buy-to-let market, ranging from special offer mortgage deals to fixed and variable rate options.

In addition, mortgage lenders will often assess buy-to-let mortgages on the earning potential of the property (ie. the rental income) as well as normal income.

Are you ready for a Buy-to-Let mortgage?

When you take out a buy-to-let mortgage, you will be expected to meet certain criteria:

• You will be required to put down a deposit and this will be typically larger than for a standard residential mortgage - it will likely be 15-25% of the property's value.
• Your expected rental income must exceed your mortgage repayments by a certain percentage - for example, your lender may require a rental income of 130% of your monthly mortgage payments.
• Your lender will also want to establish whether the property you are buying is a good long-term investment.