BTL mortgages are like residential mortgages but with crucial differences , such as:\r\rInterest rates and fees are higher;\rMinimum deposits for a buy-to-let mortgage is usually 25%, compared with 10% for residential;\r\rUsually, BTL mortgages are interest-only. It means you pay the interest monthly but not the capital amount. You repay it at the end of the mortgage term. BTL mortgages are available on a repayment basis too.\r\rThe Financial Conduct Authority (FCA) doesn't regulate most BTL mortgage lending. Some exceptions include inherited property to let, or you let the property to a close family member. These are considered consumer buy-to-let mortgages and are assessed based on affordability rules as residential mortgages and regulated by FCA in the same way as residential mortgages.