Buy to Let was initially a joint initiative by the Association of Residential Letting Agents, ARLA, and five major mortgage providers. The scheme is designed to help private individuals to invest in property to let without being penalised by mortgage surcharges or paying commercial rates of interest. Mortgage lenders in the Buy to Let scheme will take account of rental income likely to be achieved from a property. These days there are many choices of funding within the market place as the success of Buy to Let has been acknowledged by the mortgage industry.

Historically, borrowing on income-producing property has been viewed by lenders as a commercial proposition. So, mortgages on property to let, even for private individuals, have attracted higher rates of interest than the standard mortgages offered to owner-occupiers.

In addition, until now, rental income has usually been disallowed when assessing a borrowers ability to meet mortgage payments.

Now, the view of many lenders and all other housing professionals is that growth in the private rented sector must be encouraged. Not only does it lag well behind the private rental sectors of all the other advanced economies, the lack of choice between renting and buying is, in fact, bad for the economy and a contributory factor to the booms and busts of the housing market over the last decades.

But, the change in lending criteria and the lowering of interest rates for private investors has only been made possible by the strong presence of professional, bonded letting agents in the lettings market.

Gross returns - the rent received before taking account of the costs of letting - such as management fees, maintenance, service charges, ground rents and insurance - have decreased in recent years and but have been made up for in the capital growth of the property.

Buying a property to let is not the same as buying your own home. Mortgage lenders will want to know that an ARLA member agent has been advising on the selection of properties suitable for letting.

The experienced agent will know the local market, whether there is a demand for, say two-bedroomed flats or four-bedroomed houses, or for properties close to schools or transport links or secluded properties with gardens. Also, the agent will know the standard of decoration, furnishing, fixtures and fittings required.

Then there is the selection of well-covenanted tenants who will pay their rent on time and leave the property on time and in a proper state; and there is the management of tenancy.

Knowing that the management of any inherent risk is in the hands of a professional agent enhances the creditworthiness of Buy to Let propositions put to mortgage lenders.

Armed with suitable advice from an ARLA letting agent, Buy to Let investors can start on a property search; or a letting agent may do this for them, instruct their own sales department or work regularly with the best estate agents in their area.

Once a property has been found, the letting agent will confirm whether or not it has letting potential, the range of the likely rent that can be achieved in current local market conditions and advise on the need - or otherwise - for re-decoration and new fixtures and fittings to attract good tenants and to reduce the risk of lengthy void periods.

Broadly, there is little difference between arranging a Buy to Let mortgage for investor landlords and a standard mortgage for owner-occupation. Buy to Let mortgages are subject to the usual status checks. Loans can be arranged for terms of between 5 and 45 years; and for up to 80% of the value of the property.

Through the Buy to Let initiative, rents achievable from an investment property can be taken into account, provided an ARLA member agent is to be responsible for letting and managing the property.