Buy to Let in 2025, is it worth it?

Hi all.

Currently in the process of purchasing a house as a BTL through a LTD company, with money from our current house as the equity has gone up by a considerable amount, and I'd greatly appreciate everyone’s input on the risks vs reward side of things, I've had mixed opinions... I have some numbers below and just wanted to share to see what people think.

Understandably it’s a tough market for landlords, arguably it’s not worth it for new landlords, but I’ve done some calculations based on final figures and it doesn’t seem all too bad… (I hope!)

I’d also like to mention that we’re borrowing about £28k on top of what we need for the BTL (deposit + stamp + solicitor etc…) to put towards our honeymoon and personal house works. BTL funds are £71k, with £28k for honeymoon, personal house works, a safety fund etc...

Main current outgoings per month:

  • Mortgage 4.2% (40yr): £1306
  • Council Tax: £224 (paid for 10 months a year)
  • Internet: £37
  • Car: £441 (expected to drop to approximately £370 this year)
  • Water: £42
  • Gas & Electricity: £200
  • Food Shopping: £240

Total - £2490 split 50/50 with my wife, £1245 each. We both pay in £1350 comfortably every month.

Main outgoings once we remortgage / purchase BTL:

  • Mortgage (2yr fixed 4.54%, 40yr): £1779 (around £120 is for personal funds)

  • BTL Mortgage (2yr fixed, 4.89% 25yr interest only): £724 (£5k product fee included in this cost)

  • Council Tax: £224 (pay 10 months a year)

  • Internet: £37

  • Car: £441 (dropping to approximately £370 this year)

  • Water: £42

  • Gas & Electric: £200

  • Food Shopping: £240

Total - £3687

Est minimum rental on the BTL is £1300pcm

Total - £3687, with £1300 rental income, total is £2387, £1193 each.

Estimated current profit on the LTD Company BTL is around £4383 per year (£15600 income, minus £8688 interest and £1500 to cover accountant, insurance and gas safety etc...) makes corp tax approx £1028.

Obviously the LTD is separate, so we have to cover the increase in the personal mortgage ourselves, then look at taking dividends etc... when necessary if we needed the income.

Completely understand there’s wear and tear etc… on property and the figures are only accurate if there’s guaranteed rental all the time, but currently it’s pretty much the same price per month but with our honeymoon and personal house works being paid off as well.

I know it's a gamble expecting rates to drop (although predictions indicate they will) but even a 1% drop on our personal mortgage would save us an extra £250 month, including the BTL then its £350/£400 per month.

Am I missing anything as an immediate concern in my calculations? I’m new to this and it’s my first BTL, hopefully long term. BTL profit will eventually be used for pension / retirement.

Thanks all!