In this case, there are two mortgages involved: a buy to let mortgage for your current property and a residential mortgage for the home you are purchasing.

Buy-to-let properties are popular because of three main reasons:

1. It is a long-term investment that provides financial security.
2. There is capital growth involved as the value of the property goes up with time.
3. You can earn rental income from your property.

When purchasing a buy-to-let property, you must consider buying a property that is the most demanded rental. The property being purchased is not for personal use so a thorough research of the market demand is necessary.

If buy-to-let properties can make money, they can even turn into a really bad investment. If you purchase a property with less market demand, then you might suffer. You must also research different rental rates in your area to make sure you charge a competitive market price.

How Does A Buy To Let Mortgage Work?

Buy-to-let mortgages are interest-based. You have to pay for the interest for each month and not for the capital, as you are not residing in it. The amount you receive is based entirely on the monthly rental which you will be receiving.