What is the difference between a buy-to-let and a residential mortgage?

Typical residential mortgages necessitate monthly loans and interest repayments. Residential mortgages are taken to buy a property to live whereas Buy to Let mortgages are taken to let out. When it comes to buy-to-let mortgages, most landlords choose an interest-only mortgage, which means they only pay the interest, a much lower payment than a residential mortgage.

Regulatory protections are built into residential mortgages to reduce the possibility of borrowers losing their homes. It means that all residential mortgage lenders must follow strict guidelines from the time a mortgage is sold until it is repossessed.

BTL mortgages are considered a 'business' transaction because the property on which the mortgage will be secured is not the borrower's primary residence.


Original Source:- https://www.quora.com/What-is-the-difference-between-a-buy-to-let-and-a-residential-mortgage/answer/Ranjit-Singh-3890

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