Buy to let calculator - Required rental - Commercial Trust

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Buy to let mortgage calculator - how much can I borrow?

The amount you can borrow for a buy to let mortgage depends on the rent the property you want to invest in will attract.

New landlords can borrow a maximum of 80% of the property value. Landlords with experience in letting property can borrow a maximum of 85% of the property value.

Input the rent you expect to generate to see an illustration of how much you can borrow for buy to let.

Affordability calculations

Buy-to-let lenders set different mortgage affordability calculations. This buy to let calculator gives two illustrative examples of possible mortgage affordability calculations and works out the minimum rent required to satisfy them. The calculator is for guidance purposes only.

If the rent you charge does not fulfil the calculations above, it may still be possible to borrow the amount you need as some lenders use calculations which allow for more generous borrowing.

Talk to our advisors for a personalised mortgage illustration.

Buy to let mortgage rental coverage

The majority of buy to let mortgage lenders require the monthly rent you charge to be able to cover the actual amount you are required to repay each month by the terms of your mortgage deal, plus an additional threshold amount.

This is to protect you from financial difficulty in the event your circumstances change (e.g. void periods or a change in rate).

The buy-to-let rent calculator gives two illustrative examples of the type of calculation a lender may use to establish the affordability of the mortgage amount you are applying for.

The actual calculations used vary considerably from lender to lender, which is why it is vital to get a personalised illustration and is where our advisors can help.

PRA changes to Mortgage Affordability

In September 2016 the PRA (Prudential Regulation Authority) introduced changes to the rental affordability calculation that they require lenders regulated by them to use.

Not all lenders are regulated by the PRA which means that affordability calculations vary between lenders.

Considering a new purchase?

If you are purchasing a new property and are unsure of the rent you might attract, you can research what similar properties in the area secure by using property portals such as Rightmove, Zoopla, Primelocation or Gumtree.

Our experts can give invaluable guidance and recommendation

The complexity of mortgage affordability calculations is one of the many complicated aspects of identifying the right buy to let mortgage for your circumstances that our specialist advisors can steer you through.