A residential mortgage is a mortgage for a property in which you intend to live. Usually, you will have a lower deposit and higher monthly payment. You are not allowed to rent it out, or you are in breach of your mortgage contract. If you wish to turn it into a let-to-buy, you must talk to your residential lender or remortgage.
A buy-to-let mortgage is taken out with the sole intention of renting out to others. With a higher downpayment, less regulation, and an interest-only repayment plan, most buy-to-let mortgages focus on maximising profit through rental, not paying off the entire mortgage as quickly as possible.
Residential vs Buy-To-Let mortgages Print
Created by: Callum Crofts-Wheal
Modified on: Wed, 12 Aug, 2020 at 3:58 PM
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