The relationship between rental income and the amount you can borrow to finance your investment is one of the most important.
One of the first checks lenders make when you apply for a buy-to-let mortgage is whether the rental income is high enough to cover the repayments and associated costs of letting the property.
Although it can vary, lenders usually want rental income to be 125-130 per cent of the amount you repay on the mortgage each month. Knowing this, it makes sense for you to check these figures for yourself, before you apply, by following these steps:
From the 30th September this year, landlords with four or more buy-to-let properties will have to satisfy different criteria to secure mortgage borrowing, as they will be considered ‘portfolio investors’ under new rules being introduced by the Prudential Regulation Authority.
This three bedroom semi-detached property offers spacious accommodation throughout, with the potential to add a fourth bedroom on the ground floor it is perfect for a modern family. With well presented rooms and rear garden this property won’t be on the market long.
To the ground floor this property compromises in brief; entrance hallway, lounge, study/fourth bedroom and a large kitchen/breakfast room great for entertaining.
The first floor then reveals three well proportioned bedrooms and family bathroom.
Externally this property offers a good sized rear garden. There is also potential to create off road parking at the front of the property.
The potential yield for this property is 6.4% which is based on the rental figure of £750 pcm. Situated near Bredbury train station, local amenities and the M60 motorway, this property is ideally located and would attract a lot of families.
Currently on the market with Edward Mellor, Woodley and Bridgfords, Stockport for £139,950.