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Buy to Let mortgage rules setting minimum rental income
Marshalln
Posts: 3 Newbie
I have been told that the rent I proposed to take on my new buy to let property were too low. What are the rules on setting the minimum rental income?
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Comments
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Told by who?You can charge whatever rent you want. The only 'rules' I can think of might be a mortgage lender's lending criteria.Seems a bit worrying that you have embarked on this business venture without fully understanding what it involves.....0
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what yield does your business plan show?0
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Talk to a B2L mortgage broker. He'll give general advice..
But certainly if rent low compared to what you plan to borrow, nobody with half-a-brain would want to lend: e.g. (daft example), Property worth £1million, you wish to borrow £900k, you propose rent of £400/month. The numbers don't add up.0 -
Have you purchased it yet? If you need a mortgage, the common requirement is that the rent is 125% to 145% of the mortgage repayments.0
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The rules are all that I was interested in, but all of you thank you for responding so quickly.
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