A buy-to-let mortgage is a specific type of mortgage product that is designed for individuals or investors looking to purchase a residential property with the intention of renting it out to tenants. Unlike a traditional residential mortgage, a buy-to-let mortgage is considered a business transaction, which means that interest rates and fees may be higher than those charged for a traditional residential mortgage. Instead of basing the loan size on the borrower's income, the mortgage provider uses a "rent-to-interest" (RTI) calculation, taking into consideration the expected rental income from the property. This type of mortgage is considered a business transaction, so it is important for the borrower to have reliable tenants in order to secure a steady income from the property. It is also worth noting that although rental income is considered income for tax purposes, there are tax advantages to having a buy-to-let property. Professional landlords often opt for interest-only mortgages as they are better suited for their needs.

If you're considering a buy-to-let mortgage, Patrick Wayne Wealth can help you understand the process, the available options, and guide you through the steps necessary to secure the right mortgage for your needs. They can help you understand the tax implications, how to evaluate the potential rental income, and ensure that you have the right strategy in place to meet your investment goals.