Many people buy properties as an investment using the rental income to cover the mortgage payments. As part of a lenders decision making process they will assess this potential income.

Interest rates for this type of mortgage are generally slightly higher than a normal mortgage.

Many lenders also require a minimum of 15% deposit.

You will also need to consider the running costs of the property, such as maintenance and decoration as well as the initial costs of purchasing furniture if letting the property out furnished.

Other costs involved are agents’ fees if using a letting agent, service charges, ground rent and insurance.