With current interest rates, how do I calculate if a potential buy-to-let property's rental yield is actually good enough to cover mortgage payments and other running costs, especially as a first-timer?
Quick Answer
Calculating if a buy-to-let property's rental yield is sufficient involves comparing annual rental income against all costs, including mortgage payments, SDLT, and operational expenses, to ensure positive cash flow and meet lending stress tests.
About This Topic
Calculate BTL rental yield with current interest rates (5.0-6.5%) and 5% SDLT. Learn to cover mortgage payments and costs including 125% stress tests for first-time investors.
This question is part of our Financing & Mortgages category, providing expert guidance on UK property investment.
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