Buy-to-let mortgages

If you're looking to invest in property, you may want to consider a specific buy-to-let mortgage. This can apply to residential property, holiday letting or student accommodation for parents with children at university. Usually you will need a much larger deposit - around 20% of the mortgage. Other things to consider are using an independent broker to help find a deal, lettings agents, and legal implications that may require qualified advice.

Pros:

• Property can be a profitable long-term investment if you have spare cash
• There are possible tax advantages
• The amount you can borrow is usually based on the anticipated rental income for the property

Cons:

• Can be a high-risk strategy
• Costs involved, especially at the start, may be high, and the process can be complex. Independent legal advice is recommended.