With UK property prices still high, is a 5% gross rental yield still considered acceptable, or should I be striving for 6% or more to make a profitable investment after mortgage repayments, especially if I'm on a 75% LTV mortgage?
Quick Answer
With current mortgage rates hovering around 5.0-6.5%, a 5% gross rental yield on a 75% LTV mortgage often results in negative cash flow. Investors should aim for gross yields of 6% or more to ensure profitability after mortgage and operational costs.
About This Topic
Assess if a 5% gross rental yield is viable given current UK mortgage rates. Learn why aiming for 6-7%+ is crucial for profitable BTL investments with 75% LTV mortgages in December 2025.
This question is part of our Financing & Mortgages category, providing expert guidance on UK property investment.
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