A Buy to Let mortgage allows people to borrow money to purchase a property that they want to rent out. Buy to Let mortgages work in much the same way as conventional mortgages and are generally interest-only, with the likelihood of income from renters being taken into account when both the repayment and overall loan size is settled.
This type of mortgage is designed specifically for landlords to enable them to borrow money to buy properties to let. In general, Buy to Let mortgages are interest-only, so the monthly repayments do not contribute towards the actual loan being paid off. Rather, each month, rent money collected from tenants is used to pay off the interest that is charged on the mortgage, with the remaining capital being repayable at the end of the term of the mortgage.