Rental Income - One of the most important factors to consider when looking at a buy to let property is the amount of rental income the prospective property can generate. The majority of lenders require the property generate at least 125% of the monthly mortgage amount.
For Example: If the monthly mortgage payment is £500pcm, the monthly rental amount would need to be at least £625pcm. The amount you can borrow for a buy to let property is determined not only by the rental income, but also by the loan to value.
Loan to Value - Another factor to consider is the loan to value (LTV). This is the percentage calculation of borrowing against the property. The lowest deposit available in the market is around 15%, however competitive rates start around 25%. This percentage is the amount of deposit you will need to place on the property when making the purchase.
A large percentage of lenders will accept the following sources of deposit, these include;