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Property Details
£
£
£/monthPurchase Costs
One-off£
£
£12,900
Mortgage fee
£
£
Deposit£55,000
Total purchase costs£15,899
Total cash required£70,899
Assumptions
Recalculates instantlyMortgage type
Deposit% of purchase price
25
£55,000
Interest rate% per annum
4.5
Loan termyears
25
Cost allowance% of gross rent
20
Verdict
MarginalNumbers are tight.
Gross Yield
5.2%
Net yield
4.2%3–6% net marginal
ICR stress test
1.26≥ 1.25 passes
Monthly cashflow
+£145positive
Gross Yield
5.2%
annual rent ÷ price
Net Yield
4.2%
after running costs
Monthly Cashflow
+£145
rent − mortgage − costs
Annual Cashflow
+£1,735
monthly × 12
Loan Amount
£165,000
@ 75% LTV
Break-even Rent
£805
interest + costs floor
Repayment Payment
£917
full P+I monthly
Void Coverage
How many months per year of empty property your annual cashflow surplus can absorb before you need to draw on savings.1.8 mo/yr
vacancy months absorbed
ICR Stress Test
Lenders stress-test at 5.5% interest-only. Your rent must cover at least 125% of that payment to qualify for a BTL mortgage.Ratio
1.26
Passes01.25 min2.0+
Actual rent£950/mo
Min rent to pass£945/mo
Stamp Duty (SDLT)
Higher rate · Apr 2025| Up to £125,000 @ 5% | £6,250 |
| £125,001–£250,000 @ 7% | £6,650 |
| Total SDLT | £12,900 |
5.86% of purchase price · payable on completion.