Rental yields key

The Financial Times highlighted at the weekend the importance of buy-to-let rental yields in obtaining the best rates on buy-to-let finance and also the highest loan to value (LTV). This is because most buy-to-let lenders look at rental cover when accessing the acceptability of the loan. Rental cover is the amount of rent received or projected to be received compared to the size of the proposed mortgage payments.

The higher the gross rental yield the more scope a landlord has to gear up their investment with a larger mortgage and a smaller deposit.

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