Buy to Let Mortgages Calculator

Find out more about BTL mortgage calculators.

 

Buy to Let Mortgage Calculator 

What is it, what does it do and how does it help? 

Interested in buy to let mortgages but want to learn more about the feasibility of such an investment? Buy to let mortgage calculators can help you to figure this out. With the help of such calculators, you can get a better idea of where you stand with your buy to let project, and therefore enabling you to make a more informed decision on the next steps for this.

What a buy to let mortgages calculator does can vary depending on its provider. Some enable you to get a rough estimate on the amount you’ll be able to borrow through a mortgage, whilst others can help you to calculate the rental income your property would have to provide in order to secure said mortgage.

It’s worth noting that whilst mortgage calculators can help to give you a rough idea of various figures relevant to your project, these are just an idea of such figures, and should not be taken as the final word.

To help in properly establishing where you stand with your buy to let project, it’s important to seek professional advice from experts in the field, and confirm figures with potential lenders to get a more accurate sense of how feasible such a project would be given your circumstances.

How Much Can I Borrow With a Buy to Let Mortgage?

The amount you can borrow on a buy to let mortgage will depend on the rental income the property will likely generate. This differs from a regular residential mortgage, which will instead be dependent on the applicant’s outgoings as well as their salary.

The amount of rental income the property will be required to provide varies from lender to lender. However, it’s said that lenders will usually require this rental income to be 125% the monthly payments of the mortgage at minimum – this being for an interest-only basis.

In addition to this, lenders will also require successful applicants to be earning an income themselves, this being £25,000 or more annually.

 

How Is a Buy to Let Mortgage Worked Out?

When working out the details of a buy to let mortgage, lenders will usually consider numerous different factors, including the following:

  • The rental income the property will be able to provide.
  • How big your deposit is.
  • Whether you can afford payments if the house is unoccupied for a period of time.

Lenders see buy to let mortgages as higher in risk than the standard residential mortgage, meaning the buy to let mortgages deposit is typically higher. Buy to let mortgages rates (for interest) are also typically higher than for residential mortgages. 

 

How to Work Out the Best Buy to Let Mortgage for Me

When looking to get a buy to let mortgage, it’s important to consider the details above to help you establish how feasible such a project would be.

It’s important to speak with an experienced professional when looking to find a BTL mortgage, and One Buy To Let can help. Simply fill in our enquiry form and we’ll be able to help connect you will our trusted brokers and lenders.

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Buy to Let News

Not only do we regularly help people and businesses searching for a buy to let mortgage but our website regularly provides industry updates on the sector.

Naturally we want to help our customers speak to buy to let lenders that can help – but we also want our customers to use us for trusted financial services news and updates so they are kept well informed.

Check back regularly or follow us on Twitter and we will update you on all that is going on in the UK buy to let market.

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