Buy to let mortgage

kingstreet

This is going to be extremely tight on rental affordability.

On 6%/125% you need a minimum of £504 per month.

Pixie5740

Cupcake85 wrote: »

The estate agent said the rent should be about £500 per month, my mother is not in it for a profit she is looking for a long term gain

That's a bit daft. What's the point of running a business if you don't want to make a profit. How will your mother cover void periods, maintenance costs, insurance, etc if the business is not making any money?

ACG

Pixie5740 wrote: »

That's a bit daft. What's the point of running a business if you don't want to make a profit. How will your mother cover void periods, maintenance costs, insurance, etc if the business is not making any money?

I suspect the reason for the investment is to sell it down the line either with the mortgage paid off/down or an increase in the value?

If you put £500 a month in to stocks and shares your covering the full £500. If you put £500 a month in to a mortgage and only get £300 after void periods your only covering £200?

Just a thought. I could be wrong.