What may be a suitable return for you, may not be seen the same way by a lender.
Typically minimum rental yields are formulaic and driven by two things:
- the rate used to calculate the mortgage payment
- a percentage over-ride to allow for any rental void or increases in short-term interest rates which might impact your personal finances (these range between 100 – 130%).
Some Buy To Let Mortgages are not regulated by the Financial Conduct Authority.