With a mainstream mortgage, the amount you can borrow is based on your income. With a buy-to-let mortgage it is based on the amount you can receive in rent. As with any loan product, this varies greatly from bank to bank, and depending on your circumstances, but typically the rental income will be at least 100% of the mortgage repayments. Normally you will also need to raise a deposit of around 10%.

In the ‘90s, with low interest rates and a seemingly endless property boom, many investors saw buy-to-let mortgages as a fail-safe get-rich-quick scheme. But now, with the market stagnating and soaring interest rates, there are no guarantees of huge profit. Nonetheless, rented accommodation is still popular and there are a few things you can do to maximise the investment potential of a buy-to-let property.

It's crucial to look for a suitable property using much of the same criteria as you would for your own home. After all, if you wouldn't want to live in the property or area in which it is situated, you can't expect others to pay a reasonable rent for it. Conversely, you need to ensure the area you are looking in isn't saturated with rental properties. Look out for big new developments and get in early. Check local estate agents for volume of business and prices so you know the market you're dealing with.

Beware of seasonal markets. Students, whilst they may seem like an endless source of rental income, tend to leave their houses during the summer months and look for a new place for the next year. You will also have to be prepared for lower levels of cleanliness and maintenance!

Is the area safe? Would you be happy for your daughter or other loved ones to walk home at night? Are there nearby services like buses? Again, judge these criteria by your own living standards. Consider the local amenities – are there nearby shops where you can buy newspapers and household essentials?

The property itself will take a lot of consideration. What will your costs be? Does the house need new fittings or a new boiler? Investing in efficient, modern appliances before you let the property out will save you future financial headaches and disgruntled tenants.

Once you've considered all the options and potential pitfalls, you are ready to look at which mortgage product is for you. Use a reputable bank such as Alliance & Leicester for buy-to-let mortgages and their useful mortgage calculator. For nationwide property searches try Fish4.co.uk.