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