Although the rules and regulations around buy-to-let mortgages are similar in some ways to a standard residential mortgage, there are important differences:
• Interest rates are generally higher than with a residential mortgage.
• Fees tend to be higher.
• Most are interest-only mortgages, so you don’t pay every month but at the end of the term you repay it in full.
• The deposit is usually 25% of the property value, but can vary between 20-40%.
• Many are not regulated by the Financial Conduct Authority. There are exceptions to this. For example, if you let the property to family member it is called a consumer buy-to-let mortgage and is assessed in the same way as a residential mortgage.