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.
Capital and repayment:
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.
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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 –
- 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.
Mortgage Affordability Calculator
Our affordability calculator can tell you how much you can potentially borrow from a mortgage lender. Simply enter your total household income below and our calculator will do the rest.
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.
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
Our mortgage repayment calculator can tell you how much your mortgage will cost you each month and overall. Enter the amount you’re borrowing, the term length and interest rate, and our calculator will do the rest.
Total amount paid at end of term:
Get started with an expert broker to find out how much they could help you save on your mortgage repayments.
First Time Buyer but definitely going back for my BTL
Graham Turner and Lizzie Teale were fantastic! 2 hour response times, informative market knowledge and professional attitudes! First time buyer but definitely going back to them for my Buy to let!
Lorna has been absolutely outstanding!!!!!
Lorna has been amazing. She’s very patiently guided us through the minefield of mortgages and shown herself to be a real expert when coming up with options for our multiple buy requirement. Can’t recommend her highly enough!!!
We can't believe how easy all this was…
We can't believe how easy all this was no pressure, no jargon, nice and simple, and just a phone call away. Every think was broken down. Omar was made call when needed. Everything was done by email too. And documents needed or information was easy. It was stressed free and friendly for us.
Gail Toni Marnell
Rated 4.8 out of 5 stars across Trustpilot, Feefo and Google
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.
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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