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Loan to Rent Ratio

  • The ratio of rent to mortgage-loan required to pay the loan expressed as a per cent.
  • Too low rent and you cannot afford the mortgage.
  • Likewise too high interest and you may struggle to pay the mortgage interest.
  • This percentage fluctuates with Bank of England interest rates or LIBOR rates as set by lenders.
Published: 10 November 2013 Last Updated: 17 November 2021