Summary: A buy-to-let mortgage is a loan used to purchase property specifically for renting out. Lending is primarily based on the expected rental income covering mortgage payments (known as the Interest Cover Ratio), and deposits are typically higher than residential loans, often requiring 25% or more of the property value.

Summary: The UK Buy-to-Let market has transformed due to tax relief reductions (Section 24), higher Stamp Duty Land Tax, and increased regulatory burdens. Landlords must now navigate stringent mortgage affordability tests based on stressed interest rates, making investment more challenging, often requiring greater capital input and sophisticated structuring, such as incorporating limited companies.