Buy To Let Rental Calculation
Use the example below to help calculate the monthly rental cover that will be required.
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Loan To Value
|
rental cover required
|
|
|
up to 80% LTV
|
115%
|
an example calculation...
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Purchase price
|
£120,000
|
|
|
Rental cover required
|
115%
|
| Product |
7.25% 2 year fixed rate BTL, application fee of 2.5% of loan (paid in advance). |
|
£96,000 x 7.25%
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£6,960
|
|
|
Multiply by 115%
|
£667.00
|
Rental cover required
|
£667.00
|