Excessive rental income demanded for BTL loan- 2017 is this the new normal?Make Text Bigger
I am interested in a Buy to Let flat in central London valued 625k. I would like to borrow 359k. I am told that equity levels are not as important as the rental income and to lend this amount, banks would require a minimum monthly rent of 2300 pounds pm.
However, the flat currently rents for 1700 pounds pm, which would appear to be the market rate for a one bed. Is this rental figure excessive on the banks part?
Are there better deals available or has the lending market tightened up that much?
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