Skip to main content What is a buy-to-let mortgage?
Definition of a buy-to-let mortgage
A buy-to-let (BTL) mortgage is a type of secured loan issued by a financial institution to individuals for the purposes of buying property that will subsequently be let to tenants.
Similar to a residential mortgage, a buy-to-let mortgage requires the borrower to pay a percentage of the cost of the property as a deposit. The remaining cost is then covered by the BTL mortgage, which the borrower repays over an agreed period of time.
The interest rates applied to BTL mortgage repayments tend to be higher than those applied to repayments of residential mortgages.
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Disclaimer: The content included in this glossary is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this glossary. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.