Since buy to let loans were launched, the higher interest rate paid over a standard residential loan become increasingly smaller, writes David Lawrenson.

At the same time restrictions on how much the rental cover should exceed interest payments has fallen as have the maximum loan to value ratios.

Buy to let loans are also being made more widely available to co-sharers on a mortgage. It all looks good, if a little more risky.

At last, the typical buy to let mortgage is almost as cheap as a standard residential home loan.

Once you have taken account of the increasingly heavy "admin" or arrangement fee - which have gone up on both types of loan - and look at how buy to let and residential loan deals stack up, the difference is thought to average around only 0.3 per cent now.