u/ScottTracy1

Hi everyone. Wonder if someone could sense check my maths for renting out my flat in Scotland. I have just remortgaged recently and struggling to work out if im in a hole or not!

Repayment Mortgage: 25 years, 2 years fixed at 5.62%. Borrowed 103k. Deal ends SEP27.

Rent: £900

Mortgage: £637

Profit after 20% tax and expenses: -£130

Ive previously looked at it as instead of paying £637 towards a mortgage its "only" £130 but im struggling to work out if when you weight in all that interest if its even worth keeping the rental as an investment.

I am tempted to increase the rent up to £950, that brings up net profit to about -£90. Anything more would be well over average in my area.

Any advice would be appreciated. TIA.