Tim Leonard
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Use the buy-to-let mortgage loan calculator for an estimate of the amount you may be able to borrow through a buy-to-let mortgage. Next, use the buy-to-let rent calculator to get an idea of the rent you’d need to charge to cover the repayments on the buy-to-let mortgage you want.
Buy-to-let mortgage loan calculator
How much can I borrow on a buy to let mortgage?
Enter the price of the buy-to-let property you want to buy and the rent you expect to charge each month to find out how much you can borrow.
Based on the information you have given us:
An estimate of what you could borrow is
This information is an estimate and relies on certain assumptions. It is only intended as a general guide. Please ensure that you carefully check quotes with lenders or brokers before proceeding with any financial product.
Buy-to-let rent calculator
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
How to calculate the rental yield on a buy-to-let property
Rental yield is a way of measuring the return you expect to earn from a buy-to-let property. In simple terms, it’s the rental income you’re expecting to get from the buy-to-let property annually calculated as a percentage of the value of the property.
You can calculate your rental yield in three simple steps:
- Work out your annual rental income.
- Divide the annual rental income by the property value.
- Multiply the number you get by 100.
For example, if your predicted rental income for a property is £1,200 a month and the property costs £200,000, your rental yield calculation would look like this:
- Annual rental income: £1,200 x 12 months = £14,400
- Income ÷ property value: £14,400 ÷ £200,000 = 0.072
- Rental yield: 0.072 x 100 = 7.2%
Calculating the rental yield can give you an idea whether investing in a particular buy-to-let property is likely to be worth it.
What is a good rental yield?
Generally, any return between 5% and 8% is usually considered a good rental yield for buy-to-let property in the UK. However, note that returns can vary significantly depending on where the property is. For instance, in London, property prices tend to be much higher than elsewhere in the UK, which can push rental yields lower.
How much deposit do you need for buy-to-let?
Generally, you’ll need a deposit equal to at least 25% of the value of the property to get a buy-to-let mortgage. There may be lenders who allow less, but note that mortgage rates tend to get lower the bigger the deposit you can put down.
Are buy-to-let mortgages more expensive?
The interest rates and fees on buy-to-let mortgages tend to be higher than on residential mortgages. There are also other costs involved with being a landlord, including costs associated with maintaining the property, letting agent fees, and higher stamp duty rates.
» MORE: Check current mortgage rates
Useful links
- Mortgage calculators
- Mortgage interest rate calculator
- How much can I borrow for a mortgage?
- Mortgage overpayment calculator
- Mortgage repayment calculator
- Stamp duty calculator
About the Author
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