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Get an idea of how much you could borrow with this 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 give an idea of what lenders might 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. Also, lenders will assess your personal circumstances when deciding how much to lend.
Get fee-free mortgage advice from the award-winning experts at Mortgage Advice Bureau. No hidden costs, just clear, expert mortgage advice. Compare deals or speak to an adviser today.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
The 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, get personalised advice on how much you may be able to borrow based on your circumstances by speaking to a mortgage broker.
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.
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 how much you may be able to borrow based on your rental estimate.
For example, the Buy to Let mortgage calculator shows:
However, some lenders may lend different amounts, 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 individual circumstances, it’s advisable to speak to a mortgage broker. Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
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 in this circumstance, it’s a good idea to get advice from a mortgage broker.
The cost of your Buy to Let mortgage depends on several factors, including the amount you’re borrowing, your mortgage term, the mortgage interest rate 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. The lowest Best Buy to Let mortgage rates often 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, Buy to Let mortgages may have higher arrangement fees.
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 rate as well as any mortgage fees.
In some cases, it may be cheaper for you to choose a deal with a slightly higher interest rate but lower fees, while in other cases it might be more cost-effective for you to take out a mortgage with a lower rate, even if it means higher fees.
One way to compare Buy to Let mortgage deals is to look at the annual cost. This is calculated by:
But you don’t need to get your calculator out and do this yourself. The award-winning expert advisers at Mortgage Advice Bureau will crunch the numbers for you to find the right mortgage for you.
The best Buy to Let mortgage rate for you will depend on your personal circumstances. But you don’t need to do the legwork yourself – let the expert advisers at Mortgage Advice Bureau do the hard work for you. They’ll search over 100 lenders to find the right mortgage for you.
However, if you want to get an idea of BTL mortgage rates available today, see our Best Buy to Let mortgage rates guide.
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, Mortgage Advice Bureau’s expert advisers can run you through the available options to make sure you’re getting the best mortgage for you.
Mortgage Advice Bureau’s award-winning mortgage advice is free if you use the HomeOwners Alliance site. Compare deals or speak to an adviser today to see the deals you qualify for and how much you can borrow.
Each lender has different criteria however, 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.
BTL mortgage eligibility may be stricter if you’re a first time buyer or have a history of bad credit.
The best Buy to Let mortgage depends on your personal circumstances. The award-winning expert advisers at Mortgage Advice Bureau will find the right Buy to Let mortgage for you.
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, assuming you’ve made all your repayments.
Compare Buy to Let mortgages today and find the right mortgage for you with fee-free mortgage advisers Mortgage Advice Bureau.
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 plan 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. 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. You can apply for a mortgage and lock in a rate then keep it under review. Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
The expert advisers at Mortgage Advice Bureau will search over 100 lenders to find the best mortgage for you. You can use a mortgage broker to help with a remortgage even if you plan to stay with your existing lender. They can also be particularly helpful if you are self-employed or think your situation is unusual in any way.
You can start the process of getting a Buy to Let mortgage today with Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
While most Buy to Let mortgage lenders base the amount they’ll lend on the amount of rental income the property can generate, lenders may 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. 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 personal circumstances. It’s advisable get advice from a 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, including your personal circumstances.
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 Mortgage Advice Bureau Mortgages (Mortgage Advice Bureau), 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 Mortgage Advice Bureau, Mortgage Advice Bureau will be paid a commission by the chosen lender. Mortgage Advice Bureau will share a percentage of this commission with HomeOwners Alliance, the referring third party. The commission Mortgage Advice Bureau receives doesn’t affect the product or rate recommended to you.
