A friendly team by your side
With 50 years of service, we’ve seen it all. We can save you money, time and make buying your property easy.
Buy-to-Let Mortgage Calculator
Want to know how much you could borrow on a buy-to-let mortgage? Find out with our free and easy calculator below. Here you’ll also find information on stress test rates and the proposed monthly rent required.
If you’re looking to borrow money to purchase a property, we strongly advise that you speak to our mortgage advisers to find mortgage deals that match your unique situation.
Buy-to-Let Mortgage Calculator
It should be stressed that this is a very generic guide. As with everything in the mortgage market, your individual circumstances will dictate whether you qualify for a buy-to-let mortgage. We strongly advise that you speak to one of our advisers about your own situation before committing to anything.
This is not a quotation under the Consumer Credit Act. Figures are subject to validation of income, credit checks and a property valuation. This buy-to-let mortgage calculator should be used as a guide. We strongly advise that you speak to one of our advisers about your situation before committing to anything.
The maximum loan you can borrow is:
What could your maximum loan be…
Calculating your maximum loan
How is this calculated?
Our buy-to-let mortgages calculator estimates your maximum loan amount using your proposed monthly rental income and a stress test rate of 5% or 5.5% to account for any landlord cost rises. This calculator assumes a rental income of 125%of the mortgage repayments.
Next Steps
Speak to our team for a free consultation and more advice on what you can borrow.
How Much Can I Borrow for My Buy-to-Let Mortgage?
Our buy-to-let mortgage calculator will give you an estimate of how much money you can borrow to fund the purchase of a property that you intend to let out to tenants.
Enter your proposed monthly rent details below, select either 5% or 5.5% on the stress test rate field, and use the Calculate button. Please note the calculation assumes a buffer of 125%.
Our buy-to-let maximum loan calculator is a great way to start – but it’s certainly not a definitive answer – and if it’s not the answer you’re looking for, our experts can review your full situation and advise on the most appropriate course of action, including products you might not previously have considered.
Buy to Let Stamp Duty Exemptions
If you purchase a main residence above a certain value (currently £125,000), you’ll have to pay normal Stamp Duty. If you purchase a buy-to-let or second home, you’ll have to pay normal Stamp Duty plus the surcharge across the total value of the property but at different rates.
Some exemptions for Stamp Duty are as follows:
- You’re a first-time buyer and purchase a property as your main home up to £300,000
- You receive property as a bequest. You won’t pay Stamp Duty as you’ll pay Inheritance Tax instead
- You receive property or land as payment or for a reason stipulated by HMRC, such as a divorce settlement
There are also various situations where you may be granted Stamp Duty relief, such as if you’re a registered social landlord and buy property in certain circumstances, you’re a registered charity and purchase property for charitable use, or you’re an employer who buys an employee’s home because they’re relocating for work reasons.
Frequently Asked Questions
When Do I Have to Pay Buy to Let Stamp Duty?
Buy to let Stamp Duty is payable when you purchase your property. You’re required to send your Stamp Duty return and pay the applicable tax within 14 days of completing the purchase.
Normally, your solicitor will file your Stamp Duty return and pay the bill for you, and simply add the cost to your solicitor’s fees. If your solicitor isn’t able to do this, you can file and pay your Stamp Duty tax online yourself. Use our buy-to-let Stamp Duty calculator above to work out how much you’ll owe.
What Counts as a Main Residence for Stamp Duty Purposes?
For your property to count as your main residence, it must be bought with the intention of using it as your main home. If you’re already a homeowner, your previous main residence should be sold or remortgaged at the time of purchasing the new one. If you still own your previous home as a second or rental property, you’ll be liable for the surcharge for Stamp Duty on second homes. Fortunately, you’ll be able to claim this back as long as you sell the original property within 3 years and don’t rent it out in the meantime..
It’s important to note that residency is based on where you live, rather than simply where you’re registered to vote. HMRC will look at several factors, including where you work or where your children go to school.
I Want to Buy a Property in My Name but Live with My Partner in a House They Own. Will I Have to Pay the Extra Stamp Duty Charge?
No, you won’t have to pay a second home Stamp Duty surcharge as long as you’re not in a marriage or civil partnership and/or on the title deeds of your partner’s property. You’ll be treated as an individual and can buy a property at the standard Stamp Duty rate solely in your own name.
If you’re married or in a civil partnership, you’ll be seen as joint property owners in terms of Stamp Duty and be liable to pay the surcharge for Stamp Duty on second homes. You can check how much that’s likely to be using our buy-to-let and second home Stamp Duty calculator.
I’m Purchasing a House in England but Already Own a Home Abroad. Will I Have to Pay the Extra Stamp Duty Charge?
You won’t have to pay the extra Stamp Duty charge if you’re going to sell your home abroad when you buy your new house in England as this new house would be your new main residence. If you intend on retaining the home abroad, you will have to pay the extra Stamp Duty on the England property as it will technically be a second home.
I’m Helping My Child Buy a House and Already Own My Own Home. Will I Need to Pay the Additional Stamp Duty Charge?
If you’re helping your child buy a property, it’ll very much depend on the circumstances as to whether you pay the second home Stamp Duty surcharge.
If you’re purchasing the property as joint owners and your name will be on the deeds, it will technically count as your second property and all owners will be liable for the 5% surcharge. It doesn’t matter that your child may be a first-time buyer; they’ll still be liable for the additional Stamp Duty when buying a property with a parent that already owns a home.
One way to ensure your child benefits from the first-time buyer Stamp Duty exemption or simply avoids paying additional Stamp Duty (if they’ve owned a property previously), is to take out a joint borrower sole proprietor mortgage. This is where both of you can be borrowers on the mortgage, but only one of you (the child) is on the title deeds of the property.
Estimate how much you’ll need to pay overall with our buy-to-let and second home Stamp Duty calculator.
If you’re acting as guarantor or gifting some money to your child for a deposit, you also won’t have to pay additional Stamp Duty.
Are Buy to Let Stamp Duty Rates the Same Across the UK?
The rate of Stamp Duty you pay differs depending on the location of the property that you’re purchasing.
In England and Northern Ireland, the additional Stamp Duty tax rates are as follows:
- Up to £125,000 = 5%
- £125,001 to £250,000 = 7%
- £250,001 to £925,000 = 10%
- £925,001 to £1,500,000 = 15%
- Over £1,500,000 = 17%
In Scotland, the equivalent Land and Buildings Transaction Tax rates on additional properties (second homes and buy-to-let) are as follows:
- Up to £145,000 = 8%
- £145,001 to £250,000 = 10%
- £250,001 to £325,000 = 13%
- £325,001 to £750,000 = 18%
- Over £750,000 = 20%
In Wales, the equivalent higher residential tax rates for Land Transaction Tax (for buy-to-let and additional residential properties) are as follows:
- Up to £180,000 = 5%
- Over £180,000 up to and including £250,000 = 8.5%
- Over £250,000 up to and including £400,000 = 10%
- Over £400,000 up to and including £750,000 = 12.5%
- Over £750,000 up to and including £1,500,000 = 15%
- Over £1,500,000 = 17%
How Do I Pay Buy to Let Stamp Duty?
You have 2 options for paying Stamp Duty. The most common way to pay your Stamp Duty is through your solicitor or conveyancer. Normally, they’ll file your return and pay your Stamp Duty for you, including any second home or buy-to-let surcharges – some will add the cost to their fees.
If your solicitor or conveyancer can’t do it, or you’d rather do it yourself, you can. You can use a buy-to-let stamp duty calculator to work out how much you owe, and file and pay your Stamp Duty online within the given timeframe.
Do I Have to Pay Stamp Duty on a Property I’ve Inherited and Want to Rent Out?
Inherited properties aren’t subject to the Stamp Duty surcharge and will usually be subject to Inheritance Tax instead. If, however, you inherit a property and purchase another one before you sell it, you’ll have to pay standard Stamp Duty plus the second home surcharge.
Where award-winning mortgage advisers live
We’re a people company. Our diverse range of talented people each bring their own knowledge and experience to the business.
Meet our team