The buy-to-let mortgage that best suits you will depend on a number of factors. The main two types of buy-to-let mortgages are repayment buy-to-let mortgages and interest-only buy-to-let mortgages. If you are planning on using a rental property as an additional form of income for the short-term, an interest-only buy-to-let mortgage may be the best option, as you will only have to make interest payments during the mortgage term, and sell the property at the end of the term to repay the capital amount, which will hopefully also provide a return. This gives you more available finances to fund the management of the property and to cover any void periods when the property is between tenants; but it does rely on the property value not decreasing over the term, which can lead to negative equity if the mortgage amount becomes higher than the property value. If you are looking at a rental property as a more long-term investment, perhaps to supplement your retirement savings, you should consider a repayment buy-to-let mortgage, as then you are guaranteed to own the property in full at the end of the term.
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