Buy-to-let mortgagesMFB new logo

A buy-to-let mortgage is a mortgage for purchasing residential property with the specific aim of letting the property to tenants in the private rented sector (PRS). The property itself is an investment asset on which the investor aims to earn a rental return and achieve capital gains as property prices rise over time.

Many people like the sound of property investment. There is a strong belief in the UK that property is a safe investment. Some even think it’s a get rich quick scheme. Think again. It’s a big commitment and there are no guarantees that you will make money. Investing in property will mean that you become a landlord – a job that comes with responsibilities and hard work.

If that hasn’t put you off, one of the first questions you need to ask yourself is “why do I want to become a property investor?”

Obviously that question has many different answers but increasingly there are two reasons that stand out amongst those who have no plans to become professional landlords:

  1. I can’t sell my house and I need to move
  2. It will provide me with a good pension