Buy-to-let is a British phrase referring to the purchase of a property specifically to let out. A buy to let mortgage is a mortgage specifically designed for this purpose.For many years landlords have invested in residential property to be let for profit, but arranging a mortgage loan to buy such property had always been hard as tenants were hard to evict and rent levels were relatively low. Since the introduction of the Assured Shorthold Tenancy in the mid-nineties however the rights of tenants and landlords have been more evenly balanced and mortgage lenders have been more willing to provide finance. This led to a rapid expansion in the amount of mortgage finance available with schemes specifically designed for amateur and professional landlords that became known as buy to let mortgages. The recent credit crunch, however, has caused most UK lenders to cease offering these kinds of mortgage.
