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There are a number of differences between a buy-to-let mortgage and a residential mortgage, which you take out for a home you're going to live in:

• While residential mortgage lenders look at how much you earn and how much you can afford to pay back when deciding how much to lend to you, a buy-to-let mortgage provider mainly looks at how much you can rent the property out for when making that decision.

• A buy-to-let mortgage deposit generally needs to be larger than a residential one.

• The tax treatment is different because lenders and the government regard being a landlord as a business activity.

• Most residential mortgages are repayment mortgages but buy-to-let mortgages tend to be interest-only.

Most buy-to-let mortgages are interest-only loans. When you're thinking about getting a BTL property to rent out, you'll need to make sure the rental income covers the cost of your mortgage payments.

You should have a plan for how you'll pay off the capital amount that you borrowed to purchase the property at the end of the mortgage term. You may choose to do this by selling the property.

At the end of the buy-to-let mortgage term you can either pay off your buy-to-let loan or remortgage your buy-to-let property.

This depends on the terms of your buy-to-let mortgage, but it is unlikely that your lender will allow it. Often, as a condition of your buy-to-let mortgage, the property must be let to tenants and not lived in by you. This is because a buy-to-let mortgage is designed to be paid for with rent income from tenants.

If you break the terms of your buy-to-let mortgage, your lender could ask you to repay the loan immediately.

You can have multiple buy-to-let mortgages. Some lenders set a maximum of around two to five mortgages that you can take out with them, but there is no specific rule preventing you from taking out more.

Some lenders may also have restrictions on the number of BTL mortgages you can take out from other banks or building societies. Make sure to check the terms and conditions so you understand any limitations.

If you would like to switch your mortgage to a buy-to-let deal, there are two options.

• You can get consent to let – this is when your lender gives you permission to rent out your property on your standard residential mortgage. You'll need to speak to your lender about whether this is possible, what the process is and whether any additional costs are involved.

• You can remortgage to a buy-to-let mortgage. There are different requirements for BTL mortgages compared to standard residential mortgages so make sure you meet the eligibility requirements.

Tax changes brought in in 2017 stopped individual landlords from deducting mortgage interest as a business cost, but limited companies are still able to make this deduction.

Instead of paying income tax on rental earnings, limited companies can also pay corporation tax on profits, at a rate of 19%. The owners then pay a reduced rate of tax on dividends.

Since 2017 there has been a huge increase in landlords setting up limited companies for their buy-to-let properties. Special purpose vehicles (SPVs) can be set up exclusively for this purpose, and some landlords will benefit from the tax advantages of owning property in this way.

Be sure to take personal tax and financial advice to fully understand your options and find out whether setting up an SPV would work for you.

It'll be difficult for first-time buyers to get a buy-to-let mortgage since many lenders will only offer the mortgage to existing homeowners with landlord experience. But that's not to say it's impossible, lenders who do offer it might just view you as high-risk. You can speak to our expert mortgage broker Mojo for more advice, or take a look at our guide on first-time buyer mortgages.