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Get an idea of how much you could borrow with our simple Buy to Let mortgage calculator.
The amount you can borrow on a Buy to Let mortgage is mainly based on the monthly rental you are getting or are likely to get. Our Buy to Let mortgage calculator will give you an idea of what you can borrow based on the expected rental income.
Simply add the amount of rent that you currently receive (or expect to receive) and our Buy to Let mortgage calculator will determine how much we think lenders will be happy to lend to you on a Buy to Let mortgage. If you don’t have this information already, you can use our rent calculator to get an estimate of how much rent you should be charging.
Of course, some lenders are more generous than others so this estimate is to be taken purely as a guide, and some lenders will want to look at how much earned income you have from employment or self-employment too.
Our Buy to Let mortgage cost calculator will give you an idea of how much you may be able to borrow on a Buy to Let mortgage, based on the rental income you expect to receive. Then by adding a few more simple details you can also see which Buy to Let mortgage deals you may qualify for, based on your circumstances, including the monthly cost. To compare Buy to Let mortgages, speak to a fee-free mortgage adviser.
The only information you need to use this Buy to Let mortgage calculator is the amount of monthly rent you expect to receive. If you’re not sure, use our rent calculator which shows you instantly how much rent you should charge based on your property type, location and local demand.
However, if you’d also like to see which Buy to Let mortgage deals you may qualify for, just click through and add a few more details.
The amount you can borrow on a Buy to Let mortgage depends on the amount of rental income you expect to receive. When assessing affordability and the BTL loan amount they may lend you, lenders usually require the rental income to be at least 25–30% higher than your mortgage payments. This means the higher your rental income, the greater your landlord borrowing power will typically be. Our Buy to Let mortgage calculator shows you instantly how much you may be able to borrow based on your rental estimate.
For example, our Buy to Let mortgage calculator shows:
However, some lenders are more generous than others so this Buy to Let mortgage calculator estimate is to be taken purely as a guide. To find out how much you can borrow on a Buy to Let mortgage based on your circumstances, it’s advisable to speak to an expert mortgage broker
If you can’t borrow enough on a BTL mortgage based on your rental valuation, you may need a bigger deposit. However some lenders allow landlords to use their own disposable income to meet any rental income shortfall. So it’s important to shop around by speaking to a fee-free mortgage broker.
The cost of your Buy to Let mortgage depends on several factors, including how much you’re borrowing, your mortgage term, and the rate of interest you’re paying and whether it’s an interest-only or repayment Buy to Let mortgage.
The minimum deposit required for a Buy To Let mortgage is generally 20-25% of the purchase price. This is higher than the typical minimum deposit of 5% for a residential mortgage. Note that the cheapest Best Buy to Let mortgage rates usually require a deposit of 40% or more.
Buy to Let mortgage rates are generally more expensive than residential mortgage rates because lenders view them as riskier. Plus, you may pay higher arrangement fees on Buy to Let mortgages too.
The main costs to consider when buying a Buy to Let include:
When you’re comparing Buy to Let mortgage deals, you’ll need to consider the mortgage rates as well as any mortgage fees. The Best Buy to Let mortgage rates often come with high arrangement fees, so you’ll need to consider the overall cost.
In some cases, it may be cheaper to choose a deal with a slightly higher interest rate but lower fees, while in other cases it might be more cost-effective to take out a mortgage with a lower rate, even if it means hefty fees.
Fee-free mortgage brokers L&C recommend annual cost as the best way to see which mortgage deal offers the best value for the size of mortgage you’re looking to take.
They calculate the annual cost by:
But you don’t need to get your calculator out and do this yourself. Speak to an expert mortgage broker and they’ll crunch the numbers for you.
The best Buy to Let mortgage rate for you will depend on the type of mortgage you want, your deposit, lender fees and more. But you don’t need to do the legwork yourself – let expert, fee-free brokers L&C to do the hard work for you. However, if you want to get an idea of BTL mortgage rates available today, see our review of this month’s Best Buy to Let mortgage rates.
If you’re not sure which Buy to Let mortgage deal is likely to be most cost-effective for you based on your individual circumstances, L&C’s expert advisers can run you through the available options to make sure you’re getting the best deal possible.
L&C’s award-winning mortgage advice is FREE. No hidden costs, just great service. You can start your mortgage online to see the deals you qualify for and how much you can borrow or speak to an expert adviser at L&C now on 0800 073 2326.
Buy to Let mortgage eligibility typically includes having an expected rental income of at least 125% of your mortgage payments, a BTL mortgage deposit of at least 20% and some lenders require a minimum personal salary of at least £20,000 too. BTL mortgage eligibility may be stricter if you’re a first time buyer or have a history of bad credit.
Most Buy to Let mortgages are taken out on an interest-only basis. This means repayments are cheaper because your monthly mortgage payments only cover the interest on your Buy to Let mortgage, you won’t be paying off any of the capital you’ve borrowed. So if you take out a £200,000 Buy to Let mortgage over 25 years on an interest-only basis, you’ll still owe £200,000 at the end of the term.
By comparison, if you take out a repayment mortgage, your monthly repayments will be higher but you’ll be paying off some of the capital each month too. This means that you will have paid off the mortgage at the end of the term.
Find out which is best for you and compare Buy to Let mortgages today with fee-free mortgage brokers L&C.
When your Buy to Let interest-only mortgage ends, you’ll need to repay the original amount you borrowed. So before taking out a mortgage on an interest-only basis, you need to have a plan of how you’ll pay it off. For example, you may plan to sell the property.
To see how monthly Buy to Let interest-only mortgage payments compare to a repayment mortgage, use our handy Mortgage cost and repayment calculator.
The best advice is to start the process before you start seriously looking for a Buy to Let property to buy. Most estate agents and home sellers will expect you to have a mortgage agreement in principle (AIP) when you make an offer. Once you have an offer accepted on a property, you make your full Buy to Let mortgage application.
Yes. The Buy to Let mortgage cost calculator can be useful not just when you initially take out a mortgage but if you’re considering remortgaging too.
You can start the Buy to Let remortgage process up to 6 months in advance – and you should certainly do it by 3 months before your current deal ends. You can apply for a mortgage and lock in a rate then keep it under review with L&C’s Rate Check service to make sure you don’t miss out on a better mortgage rate before you need to switch. Get in touch online or on the phone today to kick things off.
Mortgage brokers like the experts at L&C will scour the market for you to find the best Buy to Let mortgage deal to suit your situation. You can use a mortgage broker to help with a remortgage even if you plan to stay with your existing lender. They are also particularly helpful if you are self-employed or think your situation is unusual in any way.
You can start process of getting a Buy to Let mortgage online to see the deals available to you or speak to an expert adviser at L&C now on 0800 073 2326. They are open 9-8 Mon-Thurs, 9-5.30 Fri, 9-5 Sat, 10-4 Sun.
While most Buy to Let mortgage lenders base the amount they’ll loan you on a mortgage on the amount of rental income the property can generate, lenders will often also require you to have a personal annual income of at least £20,000 to £25,000.
Yes, some lenders consider first time buyers for Buy to Let mortgages but the criteria may be stricter. You may need to put down a bigger deposit and meet a higher rental income threshold. So it’s important to get expert mortgage advice from a fee-free mortgage broker. Read more in our guide on Buy to Lets for first time buyers.
No, Buy to Let mortgage calculators show how much you may be able to borrow on a mortgage based on your estimated rental income. They don’t check your credit score.
Getting a Buy to Let mortgage with no job may be possible but you may have a smaller choice of lenders and it will depend on your circumstances. It’s advisable to discuss your options with a fee-free mortgage broker.
Buy to Let mortgage calculators estimate how much you may be able to borrow on a BTL mortgage based on the amount of rental income you expect to generate from the property each month.
Yes, you can use BTL mortgage calculators in the same way if you’re remortgaging as if you’re planning to buy a Buy to Let. Plus, you’ll have the added benefit of knowing exactly how much rental income you achieve each month, rather than relying on an estimate.
When a lender is considering how much they may lend on a BTL mortgage, they’ll factor in the cost of the BTL mortgage vs how much rental income you expect to generate. But there are other factors too when assessing affordability, for example they’ll consider whether you can afford the mortgage if interest rates increase.
The exact amount of interest you’ll pay on your mortgage depends on the mortgage rate, the amount you’ve borrowed, the length of the term and whether it’s a repayment mortgage or interest-only.
Our mortgage cost calculator will show you instantly how much interest you’ll pay over the term of your mortgage, assuming the rate remains the same. If your mortgage rate changes, you can use the calculator again to show what your payments would be on your new rate.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice. Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ, authorised and regulated by the Financial Conduct Authority (FRN: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage. If you complete on a mortgage through L&C, L&C will be paid a commission by the chosen lender. L&C will share a percentage of this commission with HomeOwners Alliance, the referring third party. The commission L&C receives doesn’t affect the product or rate recommended to you.
