BTL Mortgage worth it?

hardass_ets

Trying to work out if its worth a BTL investment of 120K and the aprox rent would be 115wk.

Can someone tell me the average mortgage rate for a btl mortgage with a big deposit these days?

m_13

A yield of 5% (calculated here based on a value of £120k and rent of £500 pcm) is low. Some people think that yield is meaningless and only you know what you can afford but if you buy BTL with a large deposit then the mortgage is lower so the mortgage interest is lower and you can claim less expenses.

Thrugelmir

m_13 wrote: »

Some people think that yield is meaningless and only you know what you can afford but if you buy BTL with a large deposit then the mortgage is lower so the mortgage interest is lower and you can claim less expenses.

Commercially a gross rental yield of around 8-10% would be considered a reasonable return if the property was owned outright.