How are lenders currently stress-testing buy-to-let mortgage applications given higher mortgage rates, and what rental yield percentage do I realistically need to achieve to secure finance for a new purchase?
Quick Answer
Lenders stress-test BTL applications at 125% rental coverage against a current notional interest rate of around 5.5%. You'll realistically need a gross rental yield of 7-9% to comfortably secure financing for new buy-to-let purchases.
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Understand buy-to-let mortgage stress tests and the rental yield needed for finance. Steve Potter explains ICR, notional rates, and achieving 7-9% gross yield.
This question is part of our Financing & Mortgages category, providing expert guidance on UK property investment.
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