Buy-to-Let Mortgage Calculators

Want to know how much you can borrow for a buy-to-let mortgage? Use our calculator below to find out

Home Mortgage Calculators Buy-to-Let Mortgage Calculators
Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Updated: March 18, 2024

Working out how much you can borrow for a buy-to-let mortgage can be quite different to the formulas used for residential purchases. Our easy to use buy-to-let mortgage calculator below will make things much more straightforward for you.

Buy-to-Let Mortgage Calculator

Our buy-to-let mortgage calculator can show you how much your mortgage could cost you each month and overall. Simply enter the rental property value, deposit, anticipated monthly rent, interest rate, mortgage term and our calculator will do the rest.

Enter the value of the rental property here
£
A deposit of at least 20% is usually required for a buy-to-let mortgage
£
Most lenders will require a deposit of at least 20%
Deposit must be less than the property value
Enter the anticipated monthly rent here
£
Enter the mortgage rate, 5.5% is a typical rate currently but this can vary
%
Enter the mortgage term, 25 years is the average but lenders can offer shorter and longer terms
years
Borrowing

Loan to Value ratio (LTV):

Most lenders won't offer buy-to-let mortgages over a LTV of 80%.

Interest Cover Ratio (ICR):

Most lenders require rental income to be at least 125%-145% of the interest repayments for a buy-to-let mortgage.

Get started with a specialist buy-to-let broker to find out how much they could help you save on your monthly mortgage repayments.

How to calculate affordability and repayments on a buy-to-let mortgage

Whereas affordability for residential mortgages is based on a multiple of your private income, the eligibility criteria for buy-to-let is all about the strength of the property’s investment potential. More specifically, how much rental income it can produce over and above the mortgage payment.

Most lenders expect to see the monthly rental premium cover the mortgage repayment by anywhere between 125% and 145%. So, for example, if your mortgage repayment is £1,000 per month then the property’s equivalent rental premium would need to be between £1,250-£1,450.

So, technically, the amount you can borrow for a buy-to-let mortgage could be far higher than what you might be able to borrow to buy a residential property as long as you have sufficient deposit (minimum 20%) and rental income.

Maximise your chance of mortgage approval with a specialist in buy to let mortgages

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We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.

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How this calculator works

Our buy-to-let mortgage calculator is really simple to use.

No personal details are necessary, all you need to input is the following:

  • Purchase price of the property
  • Your deposit amount
  • Proposed monthly rental income (this can be estimate if not yet confirmed)
  • Mortgage interest rate
  • Loan term
  • Use the toggle at the top of the right-hand column to receive calculations for either interest-only repayments or capital and interest

If you’re still quite early in the buying process, you can use the calculator as many times as you like, and consider lots of different scenarios. Once you’re ready to move forward speak to a specialist buy-to-let mortgage broker who can look at your requirements in more detail.

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Let-to-buy mortgage calculations

Let-to-buy arrangements effectively involve two separate mortgage requirements –

For the buy-to-let mortgage, the calculations will be based on the criteria outlined in the sections above. For the property you’re moving into as your new residential home, the amount you can borrow will be based on a multiple of your annual income. Use our affordability calculator below to see how this could work out for you.

Mortgage Affordability Calculator

Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.

Input full salaries for all applicants
£

Your Results:

You could borrow up to 

Most lenders would consider letting you borrow

This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.

Some lenders would consider letting you borrow

This is based on 5 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.

A minority of lenders would consider letting you borrow

This is based on 6 times your household income, a salary multiple you will struggle to get without a broker. Six-times salary mortgages are usually only available under very specific circumstances.

Get Started with an expert broker to find out exactly how much you could borrow.

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Once you’ve seen how much you may be able to borrow, the next step is to see how much the monthly repayments could be for your mortgage. Use our repayment calculator here for a quick snapshot of what these repayments could work out at.

Mortgage Repayment Calculator

This calculator can tell you the monthly and overall cost of your mortgage, based on the loan amount, interest rate, and term length.

Enter the amount you're borrowing
£
Enter the mortgage rate, 5.5% is a typical rate currently but this can vary
%
Enter the mortgage term, 25 years is the average but lenders can offer shorter and longer terms
years

Your Results:

The monthly repayments on a mortgage would be

The total amount paid at the end of your mortgage term would be

Get started with an expert broker to find out how much they could help you save on your mortgage repayments.

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What you should do next

Now you’ve got an idea of how much you could borrow for a buy-to-let property, rather than approaching mortgage lenders directly the shrewd move is to engage with an experienced mortgage broker who can identify them on your behalf, saving you lots of time and, potentially, some money too.

Get in touch or give us a call on 0808 189 2301 and we’ll arrange for a specialist buy-to-let mortgage broker we work with to contact you straight away and discuss your requirements.

FAQs

No, not really – it still all depends upon the key requirement of how much rental income the property (or properties) you’re looking to buy can produce. The 125%-145% parameters would, again, need to be hit if you’re using a limited company for the buy-to-let purchase.

The calculations for a commercial buy-to-let mortgage would be broadly similar and will require the proposed rental premium to be at least equivalent to 125% of the mortgage repayments.

Most, if not all, commercial buy-to-let mortgages are usually only available on an interest-only repayment basis.

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We can help!

We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Buy-To-Let mortgages.

Ask us a question and we'll get the best expert to help.

Our Brokers

Get in touch today

Make an enquiry and we'll arrange for an experienced mortgage broker we work with to contact you straight away.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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