A BTL mortgage is a loan provided to individuals to buy a residential property for tenants. BTL mortgages are available from banks and building societies, with lending criteria varying according to their requirements.
It's essential to understand the difference between this type of mortgage and a typical residential mortgage, so if you're looking at buying a house you live in yourself, there will be a different process. In
some cases, there are restrictions on who can borrow money from their lender, so it's worth checking before applying for either type of loan. Besides, you may need significant savings or equity built into your
existing home before being eligible for a BTL mortgage. Likewise, you must have good credit history and income sources, such as employment contracts or rental income from other properties owned by yourself or
others within your household.
With a BTL mortgage, the buyer can purchase their property outright or share ownership with another party. Buying a property in this way means that buyers are not required to commit to long-term contracts, such
as leases, which makes buying properties far more affordable for those who wish to invest in residential real estate without being tied down. You may check out a detailed breakdown of how a BTL mortgage works in
this helpful guide.