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Buy-to-Let Mortgage Calculator
Our easy-to-use buy-to-let mortgage calculators give you an idea how much you may be allowed to borrow and the rental income needed to cover your mortgage repayments.
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 mortgage repayment calculator to get an idea of the rent you’d need to charge to cover the repayments on the 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.
How much is a buy-to-let mortgage?
How much a buy-to-let mortgage costs mostly depends on your mortgage rate, the size of your deposit, and the duration of the mortgage deal. There will also be fees associated with taking out the mortgage. A bigger deposit will normally give you access to the best buy-to-let mortgage rates.
A mortgage repayment calculator can give you a rough idea of the costs you may face, but a mortgage lender should provide you with a full rundown of everything you’ll need to pay before you apply.
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
Buy-to-let mortgage repayment calculator
How much rent do I need to charge to cover my mortgage repayments?
Enter the price of the buy-to-let property you’re thinking of buying and the size of your deposit or equity to see how much rent you’d need to charge to cover the mortgage repayments on the amount you need to borrow.
Based on the information you have given us:
In order to borrow £0 on a property worth £0 you will need rental income of at least £0 per month.
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.
How much deposit do you need for a buy-to-let mortgage?
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.
How much rent should I charge?
Some lenders require your expected rental income to cover at least 125% of the monthly repayments on your buy-to-let mortgage, while others may set a higher requirement of 145%. In addition, the rent you charge should cover the other costs usually payable as a landlord, such as landlord insurance, agent’s fees, and maintenance of your property and repairs. Importantly, the rental income you receive also needs to provide you with a profit.
» MORE: Where are the cheapest places to rent in the UK?
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.
Tim Leonard, Lead Writer and Mortgages Expert at NerdWallet
What our Nerds say…
“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.”
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
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