Thanks, now I understand that there is a difference between yield and profit.

I have two more queries:

1.What would you consider a good yield?

And

2. If the property cost 104k, is now valued at 90k, has outstanding mortgage of 60k (borrowed at 4.9%), with gross rental income of 2380 p/a.  Should I use capital earning interest at 0.5% to pay off mortgage, or continue to borrow at 4.9%?

Which makes better financial sense? Is it just simple Math; ie. its cheaper for me to spend than it is to save??

Thanks again

I know the figures don't look good, but times are hard in the UK.