Buy to Let Mortgage Calculator
Buy to let mortgages are mortgages where you are planning to purchase a property and let it out, mortgage lenders treat these mortgages very differently to normal residential mortgages and you can expect the rates of interest to be a little higher. Your buy to let mortgages options will vary on what you can borrow and this is generally on the basis of what the property will derive in rental income.
The One 77 Buy to Let Calculator offers a great starting point, but only serves as a guide, and we would always recommend having a discussion with one of our mortgage experts to get an accurate assessment of your individual circumstances and help you to decide which lender and product would be most suitable for you.
When measuring affordability for buy to let mortgages, lenders now ‘stress test’ applications in order to protect against mortgage rates rising to 5%, 5.5% and in some cases 6%. Lenders also require a ‘buffer’ in rental income. Typically they require the rental income to equate to 125%, and in some cases 145%, of the monthly mortgage payment. The below buy to let mortgage calculator will allow you to consider these various scenarios.