Free Buy-To Let Mortgage Calculator

Landlords typically opt for interest-only buy-to-let mortgages to finance their investments because they are more affordable, with monthly payments often covered by rental income. Landlords on fixed-rate deals won’t see changes in their rates until their term expires, but those on tracker or variable rates could see profits diminish as mortgage costs rise with increases in the base rate.

If you have multiple buy-to-let mortgages, consolidating them into a single loan could help reduce overall costs. This is especially beneficial if your previous loans have varied interest rates, potentially lowering your lending expenses.

With an interest-only mortgage, the original loan amount must be repaid in full when the mortgage term ends. During the term, you only pay the interest each month, deferring the repayment of the full loan until the end. Most lenders will contact you at least a year before the term expires to remind you of the repayment deadline, followed by reminders at six months and closer to the end date. As the term nears completion, the lender will issue a redemption statement, detailing the exact amount that needs to be repaid.

To see live buy-to-let mortgage rates, updated twice daily, put the following details into the calculator:

1) Loan amount
2) Mortgage term (loan period) in terms of years
3) Estimated interest rate
4) Repayment basis (Interest only is where you only pay the lender a fee, “interest”, for borrowing the money and not the lump sum you borrow. You won’t own the property at the end of the term.)

Our calculator then provides you with an estimated total monthly repayment, including principal and interest, and it splits the principal and interest so you can see how much an interest only mortgage would cost you on a monthly basis. The final number provided is the total interest paid which describes the total amount of interest you will repay over the lifetime of the mortgage term.

A buy-to-let calculator helps you work out how much you could borrow for a property you will rent out and how much your monthly repayments will be. This calculator does not provide details of buy-to-let rental return on investments (ROI) or rental yield. However, it does provide crucial information when assessing a prospective rent property, allowing you to get a more accurate estimate of mortgage costs and determine whether or not the property is a viable investment.

All you need to use the above buy-to-let mortgage calculator is an estomate of how much you are looking to borrow and the interest rate of the loan. You can then use the calculator variables to determine a suitable repayment period and plan.

Your buy-to-let mortgage is likely going to be one of your largest operating expenses as a property investor. Use our buy-to-let calculator to experiment with the numbers to work out how much you can afford to and pay in interest rates and still either break even or operate a cash-flow positive rental.

For a buy-to-let mortgage, the required deposit is typically higher than for residential mortgages. Most lenders ask for a minimum deposit of 25% of the property value, although some may accept a 20% deposit. However, for better interest rates, a deposit of 40% or more is often recommended.

Buy-to-let mortgage rates are generally higher than residential mortgage rates. This is because lenders consider buy-to-let properties riskier, as rental income may fluctuate, and there's a higher chance of tenants missing payments. Typically, the interest rates on buy-to-let mortgages can be 0.5% to 1% higher than those on residential mortgages, depending on the lender and the borrower’s financial situation.

To calculate buy-to-let costs, consider the following factors:
 • Mortgage Costs: Calculate your monthly mortgage payments (either interest-only or repayment).
 • Stamp Duty: Buy-to-let properties are subject to a 3% additional stamp duty surcharge in the UK. Use our buy-to-let stamp duty calculator here.
 • Property Maintenance: Estimate annual maintenance and repair costs.
 • Letting Agent Fees: If you use an agent to manage the property, fees typically range from 10% to 15% of the rental income.
 • Void Periods: Plan for times when the property may be empty (non-rented).
 • Insurance: Landlord insurance to cover the building, contents, and liability.
 • Legal Fees: Include conveyancing and possible eviction costs.
 • Tax: Factor in income tax on rental profits and consider tax on capital gains if you sell the property.

The average buy-to-let mortgage term is usually between 25 - 30 years, similar to residential mortgages. However, buy-to-let mortgages are often structured as interest-only, meaning you’ll need to repay the original loan at the end of the term, typically through selling the property or refinancing.

• Interest-Only Mortgage: You only pay the interest on the loan each month. The loan amount (capital) remains unchanged and must be repaid in full at the end of the mortgage term, often by selling the property or refinancing.
‍ • Capital Repayment Mortgage: You pay both the interest and part of the loan amount each month. By the end of the mortgage term, the entire loan is repaid, and you fully own the property.

In buy-to-let, interest-only mortgages are more common as they offer lower monthly payments, which can make it easier to generate rental income. However, the risk is that the capital still needs to be repaid at the end of the mortgage term.

A loan used to purchase a property, typically repaid over a long period (e.g., 25 years).

The percentage charged on the loan by the lender. It can be fixed (constant for a period) or variable (changes with the Bank of England base rate or lender’s rates).

The percentage of the property’s value that a lender is willing to loan. For example, an 80% LTV mortgage means you need a 20% deposit.For buy to let mortgages lenders generally ask for a higher deposit and a lower LTV.

The upfront cash payment you put towards the property, typically ranging from 5% to 40% of the property's value.

A mortgage with a set interest rate for a specified term (usually 2-5 years), after which it reverts to the lender’s standard variable rate.

A mortgage where the interest rate can change, often in line with the Bank of England's base rate. There are various types:
• Tracker Mortgage: Follows the base rate plus a set percentage.
• Standard Variable Rate (SVR): The lender’s default rate, which can change at any time.
• Discounted Variable Rate: A discount on the lender’s SVR for a certain period.

A type of mortgage where both the loan amount and interest are paid back over time. By the end of the term, the entire loan is repaid.

A mortgage where you only pay the interest each month, not the loan itself. The original loan must be repaid in full at the end of the term.

A process where lenders assess your financial situation (income, expenses, and credit history) to determine how much they are willing to lend.

A penalty charged by the lender if you repay your mortgage early or switch deals during a fixed-rate or discount period.

The length of time over which the mortgage must be repaid, often 25-30 years.

The portion of the property you own outright, calculated as the property’s market value minus the remaining mortgage balance.

The process of switching your mortgage to a new lender or getting a new deal with your current lender, typically to get a better interest rate.

A tax paid when purchasing a property in the UK, based on the property price. First-time buyers may benefit from lower rates. Learn more about Stamp Duty on buy-to-let properties.

A preliminary decision from a lender that indicates how much you might be able to borrow, based on your financial situation.

The legal process of transferring property ownership from the seller to the buyer. It’s handled by a solicitor or conveyancer.