24 Hour Loans glossary of financial terms

Buy to Let

Buy to let is a term used within the property and mortgage sectors. In general property terms a buy to let property purchase is one where the buyer will not live in the actual property but will rent it out to other people as a source of income and investment.

In mortgage terms this market is covered by the buy to let mortgage. This is a specialised type of home loan that has been specially designed to meet the needs of buy to let buyers. If you are aiming to buy to let then a standard mortgage may not suit you as it may forbid this kind of commercial property rental in its terms and conditions. A buy to let mortgage, however, will give you the finance you need to make this kind of property purchase. This kind of mortgage may have different conditions than those used with standard loans. For example, the buy to let lender may want to know the potential rental income instead of/as well as your own income before they approve a loan. You will probably also be expected to put down a higher deposit and the interest rates you will be charged are normally a little higher too.