Which type of mortgage?
Alike with standard residential mortgages, the same mortgage types are typically available for a BTL mortgage; fixed rate, variable rate, discount, tracker, capped rate. More often than not, the reason behind a BTL mortgage is for investment purposes, as a result some mortgage types would be more fitting than others. For example, if the borrower liked the idea that their mortgage repayment could potentially be less one month than the other, I would advise on a variable rate or tracker loan. However, if the borrower wanted consistency in his monthly repayments, I would advise on a fixed rate loan. Many BTL buyers favour the interest only mortgages as this means they are only paying off the interest on the loan until the property is sold.