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Buy to let mortgages: rental coverage explained

14 Jul 2024 Buy to let mortgages

Buy to let mortgages often require rental income to cover mortgage payments by a set percentage. This is known as a stress test or rental coverage ratio.

What is rental coverage?

Lenders compare expected monthly rent against the mortgage interest at a notional rate. If the rental coverage meets their threshold, you may qualify.

Other factors lenders consider

Deposit size and loan to value
Your income and personal finances
Property type and location
Existing landlord portfolio

Plan for fees and taxes

Stamp duty and landlord costs should be included in your overall budget. Our calculators can help you plan ahead.

We provide buy to let mortgages guidance across Coventry and the United Kingdom. Contact us for a tailored review.

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