Buy-to-Let Mortgage Calculators

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.

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.

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.

Let-to-buy mortgage calculations

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

• A remortgage of your existing property on to buy-to-let terms
• A new residential mortgage for the property you’re looking to buy

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.

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.

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.