Rented normally, it costs you £22 a month. That is £264 a year, every year you hold it.

Will it pay?Calculator

You top up £22 a month — the mortgage takes 46p of every pound of rent

Borrowing £4,056 less would close that shortfall — which is £4,056 more cash at the start, on top of the deposit.

+£790−£366−£446−£22

Rent inMortgageRunning costsShort by

The rent covers £790 of that — you cover £22

□ service charge not published2 empty weeks a year assumed

What if I change my assumptions?The dials

At the asking price, 25% deposit, 6.50% charged

Try your own numbersLive

You keep-£22/mo

All-in cash£32,775

PaybackNever

Offer−+

Deposit−+

Mortgage rate−+

Rent−+

Worked at 6.50% — 5.75% quoted plus a company premium.

◧ worked out from local rents

What will it cost me to buy?Breakdown

£31,350 + refurb costs

And about £1,318 more over five years, because it loses £22 every month you hold it — before any repair. That already assumes the rent never falls.

£31,350 to buy it

deposit · stamp duty · solicitor · fees~£1,425, unseen

□ works not inspected

What would have to be true?The working

£5,000 off and it stops losing money

At the asking price you feed it £22 a month. At £84,586 the rent covers everything — leaving stamp duty of £4,229 at that price.

offer £84,586

asked £90,000

◧ worked back from the rent■ stamp duty re-bandedrounded down to £5,000 — the rent it works back from is an estimate

What will the rent borrow?Lender test

The rent carries the whole loan — it could fall 19% and still cover it

Your deposit is what limits this one, not the rent. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£612 needed

of £760 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £760PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 850 sq ft

Only the agent’s figure exists for this house. Open for what that means.

□ area unchecked — agent’s own

Is it a good location?Open the map

Newcastle, NE11 9LA

2 of 3 schools in this postcode area rated Good or Outstanding and flood risk checking… — open for the map, the schools and the rest.

Article 4Not assessed for this address

■ postcode area, not this address

What could kill thisThe checks

You would need a licence from the council first

Letting without the council’s licence is an offence, and the fee is in no figure here.

2 problems found · 2 came back clear · 5 we could not check

■ from council licensing registerlisting last seen 14 Sep 2026

Which strategy wins?The ways to run it

Short-stay let beats Rent by the room by £39 a month

Your controls are set to Standard rental — £488 a month behind Short-stay let.

Short-stay let+£466 · £32,775 in

59 nearby short-lets within 5.5 km · medium confidence

Rent by the room+£427 · £58,775 in

Standard rental−£22 · £32,775 in

Guaranteed council rent−£50 · £32,775 in

Housing-benefit rent−£179 · £32,775 in

Each row: money kept a month, then the cash it ties up. Not compared: Do it up, then remortgage (pays back at the remortgage) · Buy, improve & sell (pays out on sale)

◧ 5 ways, one measureranked on money kept each month, at the asking price

What would you walk away with, after 5 years?The five-year sums

−£3,823 after five years on the cash you put in, before tax on the sale

Less than the same cash would have made in a savings account, after tax on the interest. The savings account’s capital is not at risk; the property’s is. A fall of about 24% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £32,775 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£32,775+£100,390−£2,510−£67,500−£1,428−£3,823

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed