Rented normally, it costs you £497 a month. That is £5,963 a year, every year you hold it.

Will it pay?Calculator

You top up £497 a month — the mortgage takes 97p of every pound of rent

Borrowing £91,741 less would close that shortfall — which is £91,741 more cash at the start, on top of the deposit.

+£1,637−£1,584−£550−£497

Rent inMortgageRunning costsShort by

The rent covers £1,637 of that — you cover £497

◧ market rent £1,637 · 6 comps2 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-£497/mo

All-in cash£150,611

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

£135,500 + refurb costs

And about £29,816 more over five years, because it loses £497 every month you hold it — before any repair. That already assumes the rent never falls.

£135,500 to buy it

deposit · stamp duty · solicitor · fees~£15,111, unseen

□ works not inspected

What would have to be true?The working

£120,000 off and it stops losing money

At the asking price you feed it £497 a month. At £267,668 the rent covers everything — leaving stamp duty of £16,767 at that price.

offer £267,668

asked £390,000

◧ 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 £173,687 of the £292,500 loan

That £118,813 is yours to find on top of the deposit. Tested at 125% instead of 145% — a company or a basic-rate taxpayer usually is — the gap is £91,023. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£2,651 needed

more than the £1,574 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £1,574PRA-style test

How big is it, really?The plan

The rooms are on the plan; the total is not

The plan is on file; the floor area is not.

□ no floor area published

Is it a good location?Open the map

Peterborough, PE27 5NS

1 of 2 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 to know before you offerThe checks

Every tenancy here is periodic, with no Section 21 to end it

Tenancies are now periodic, with no Section 21 — budget a longer void.

1 problem found · 1 came back clear · 6 we could not check · 1 does not apply to this property

■ from the Renters’ Rights Act 2025listing last seen 25 Aug 2026

Which strategy wins?The ways to run it

Short-stay let beats Standard rental by £622 a month

Short-stay let also ties up the least cash, £150,611.

Short-stay let+£125 · £150,611 in

6 nearby short-lets within 20 km · low confidence

Standard rental−£497 · £150,611 in

Rent by the room−£755 · £180,611 in

Housing-benefit rent−£1,121 · £150,611 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) · Guaranteed council rent (no scheme in this borough) · Buy, improve & sell (pays out on sale)

◧ 4 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

−£45,009 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 25% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £150,611 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£150,611+£441,436−£11,036−£292,500−£32,298−£45,009

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed