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.
Note: the Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
How Does this Buy-to-Let Calculator Work?
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.
The Topics Covered in this Article Are Listed Below:
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.
What Do These Fields Mean?
It’s important to make sure you understand the relevant fields when you fill out a buy to rent mortgage calculator.
What Is a Stress Test Rate?
When measuring affordability for a mortgage for buy-to-let, lenders stress test applications against mortgage rates rising to 5% and sometimes to 5.5%, even if the agreed final rate is lower, to guard against unexpected rises in costs for landlords.
What Is the Proposed Monthly Rent?
Lenders also typically require a buffer of 125% - i.e. the rental income each month must be 125% of the mortgage repayments.
Enter your proposed monthly rent and select 5% or 5.5%. Some lenders are beginning to stress test at a higher level so you may want to see both scenarios.
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.
Looking for Another Calculator?
See our list of mortgage calculators for tools to help you work out things like buy-to-let Stamp Duty, rental yield and more.
Buy-to-Let Rent Calculator
Not sure how much you need in rental income? Use our free buy-to-let rent calculator to work out how much you need in rent to qualify for a buy-to-let mortgage.
Rental Yield Calculator
Here you can use our free and easy calculator to work out the rental yield on your buy-to-let property. You’ll also find information on what a rental yield is and why it’s important.
Buy to Let Stamp Duty Calculator
Find out how much Stamp Duty you’ll pay on your new buy-to-let property with our free and easy Stamp Duty calculator for second homes.
Capital Gains Tax Calculator
On this page you’ll find our free and easy Capital Gains Tax Calculator that can help you work out how much CGT you’ll pay when selling a property that’s not your main residence.
Mortgage Glossary
On this page you’ll find our detailed mortgage terminology glossary. There’s a lot of jargon out there but we’re here to make it easy.
Buy-to-Let Mortgage Calculator FAQS
How Does a Buy-to-Let Mortgage Calculator Determine How Much I Can Borrow?
A buy-to-let mortgages calculator typically uses the rental income and applies a buy-to-let stress test, usually 5% or 5.5%, to determine how much you might be able to borrow. Lenders will usually want your rental income to cover your mortgage payments with some additional buffer, so it’s common for a buy-to-let calculator to assume a rental income of at least 125% of your mortgage repayments. Some may be even higher, up to 145%.
A buy-to-let mortgage repayment calculator may be slightly different and provide an estimate of the monthly payments you might expect. You typically only make interest payments each month with a buy-to-let mortgage as most buy-to-let products are interest-only, not repayment. Our mortgage repayment calculator can help you work out your monthly interest payments on a buy-to-let mortgage.
Does a Buy-to-Let Mortgage Calculator Make Any Assumptions in Its Calculations?
A buy-to-let mortgage calculator usually outlines the assumptions made in its calculations. Typically, with our buy-to-let mortgage calculator, the following assumptions apply:
- Rental income is at least 125% of the mortgage repayments under a specified stress test rate
- The stress test rate applied is 5% or 5.5% to test affordability if landlord costs increase
How Accurate Is a Buy-to-Let Mortgage Calculator?
The BTL mortgage calculator is designed to give you a very quick estimate of the likely mortgage amount you can expect to borrow, based on the rental income you expect. However, the actual amount you’ll be approved for will depend on various factors, including your level of deposit, monthly outgoings and credit history.
Reach out to our experts on 0330 433 2927, who can review your personal circumstances in full and give you a more definitive answer on what you can borrow and then advise on suitable products.
What Information Do I Need to Use a Buy-to-Let Mortgage Calculator?
Most BTL mortgage calculators will only need minimal information to give you a quick estimate, usually based on your proposed rental income and the stress test rate you want to apply. More complex calculators may ask for more personal details - such as your age, income, outgoings, and other mortgages, to test your affordability further.
If you want to calculate an estimate of how much monthly rental income you might need to qualify for a mortgage, you can also use a buy-to-let rent calculator.
Can a Buy-to-Let Mortgage Calculator Help Me Find the Best Mortgage Deal?
A buy-to-let mortgage calculator can only provide a quick estimate of how much you might be able to borrow, rather than a definitive list of mortgage deals. To find the best mortgage deals, it's a good idea to seek expert advice so that you know exactly what you can afford based on your personal circumstances and what products might be available to you, including some you might not have previously considered.
Is It Necessary to Use a Buy-to-Let Mortgage Calculator Before Applying for a Mortgage?
It’s not essential to use a buy-to-let mortgages calculator before you apply for a mortgage, but it's a good place to start. It can give you a quick, high level indication of the loan amount you might expect. Whether you’re approved, and how much you're approved for, can depend on many factors, such as your credit history and other loans you have. Our experts can review your situation in full and advise on the best mortgage products available to you.
How Is the Buy-to-Let Stress Test Calculated?
The buy-to-let stress test is calculated on your gross rental income, usually assumed to be at least 125% of your mortgage payments for a BTL mortgage calculator. A stress test rate of 5% to 5.5% is applied as a way of testing affordability should interest rates rise.
Why Should Landlords Use a Buy-to-Let Stress Test Calculator?
A buy-to-let stress test calculator helps landlords assess the affordability of a buy-to-let mortgage. By applying a notional stress test rate between 5% and 5.5%, a buffer is built into affordability calculations to account for rises in landlord costs. This is designed to ensure you’re not left struggling to make your mortgage payments.