A buy to let mortgage for a property let room by room rather than to a single household. Fewer lenders offer them and the rates are usually higher.
Lenders will want to see the licence where one is needed, and many want you to have been a landlord for a year or two before they will consider it. Some cap the number of bedrooms or lettable rooms.
Valuation can work differently. Some lenders value on bricks and mortar as if it were an ordinary house, others on the investment value of the rental income, and the two can be a long way apart.
The yields are higher and so is the management. Both are worth going into with the numbers rather than the headline.
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