Thinking about investing in property? Our Buy-to-Let Mortgage Calculator is here to help you crunch the numbers and make confident decisions as a landlord.
How This Buy-to-Let Calculator Works
Our calculator is designed for UK landlords and property investors, whether you’re just starting out or looking to expand your portfolio. It takes the guesswork out of the process by showing you exactly what you need to know before making a big decision.
With this tool, you can:
- Estimate your monthly mortgage payments, so you know what to expect each month
- See how much deposit you’ll need to get started
- Check if your expected rental income meets lender requirements, helping you avoid surprises
- Calculate potential cash flow and profit, so you can plan for the future
Just enter your details—like property price, deposit, interest rate, and expected rent—and get instant results. It’s quick, easy, and free! This way, you can compare different scenarios and find the best fit for your investment goals.
What Is a Buy-to-Let Mortgage?
A buy-to-let (BTL) mortgage is a special type of loan for people who want to buy property to rent out, rather than live in themselves. It’s a popular way to invest in property and generate rental income, but it comes with its own set of rules and requirements.
Here’s how buy-to-let mortgages differ from standard residential mortgages:
- Bigger deposit required: Most lenders ask for at least 20–25% deposit. This is because buy-to-let is seen as a higher risk than buying a home to live in.
- Higher interest rates: BTL mortgages usually have slightly higher rates than residential ones, so it’s important to factor this into your calculations.
- Rental income focus: Lenders look at the potential rental income from the property, not just your personal income. This means the property needs to be a good earner to qualify for the best deals.
Buy-to-let mortgages are a great way to build long-term wealth, but they’re not without risks. Make sure you understand the responsibilities of being a landlord and the financial commitment involved.
Key Factors That Affect Your Buy-to-Let Mortgage
There are several things that can influence how much you’ll pay and how much you can borrow:
- Deposit size: A bigger deposit means a smaller loan and less interest paid overall. Saving up a larger deposit can really pay off in the long run.
- Loan term: Longer terms mean lower monthly payments, but more interest paid in total. Think about what works best for your cash flow and long-term plans.
- Interest rate type: Fixed or variable rates can affect your monthly costs and risk. Fixed rates offer stability, while variable rates might save you money if rates go down.
- Fees: Don’t forget arrangement fees, valuation fees, and legal costs. These can add up, so include them in your calculations.
Who Can Get a Buy-to-Let Mortgage? (Eligibility Criteria)
Not everyone will qualify for a buy-to-let mortgage, but the good news is that the requirements are pretty clear. Here’s what most lenders are looking for:
- You’re at least 21 years old (some require 25+). Age requirements can vary, so check with your lender.
- A deposit of at least 20–25% of the property price. The more you can put down, the better your chances.
- Expected rental income that covers 125–145% of your monthly mortgage payment. This is to make sure you can cover the mortgage even if costs go up.
- Good credit history. Lenders want to see that you’ve managed credit responsibly in the past.
- Minimum personal income (often £25,000+ per year). This shows you have a financial safety net.
Already own your own home? That’s a plus, but not always required. Some lenders are happy to work with first-time buyers, especially if you have a strong application.
Other Things to Consider
There’s more to being a landlord than just getting a mortgage. Here are a few extra things to keep in mind as you plan your investment:
- Stamp Duty: Buy-to-let properties are subject to higher stamp duty rates. Make sure you factor this into your upfront costs, as it can be a significant expense. Use our Stamp Duty Calculator to see exactly what you’ll pay.
- Tax: Rental income is taxable. Mortgage interest tax relief rules have changed in recent years, so check the latest HMRC guidance or speak to a tax advisor to understand your obligations.
- Letting agent fees: If you use an agent to manage your property, their fees will affect your profit. Compare services and costs before choosing an agent.
- Void periods: Plan for times when your property might be empty and not generating rent. Having a financial buffer can help you weather these periods without stress.
Tips for First-Time Landlords
Becoming a landlord is exciting, but it’s also a big responsibility. Here are some tips to help you succeed:
- Research the local rental market before you buy. Understanding demand and average rents will help you choose the right property.
- Budget for repairs, maintenance, and unexpected costs. Things break, tenants move out—be prepared!
- Consider landlord insurance for extra peace of mind. It can protect you from unexpected events and legal issues.
- Stay up to date with UK landlord regulations. The rules can change, so keep learning and stay compliant.
Remember, being a great landlord isn’t just about making money—it’s about providing a safe, comfortable home for your tenants and building a solid investment for your future.
Ready to get started? Use our calculator above to see what’s possible for your next buy-to-let investment. If you have questions or want to learn more, check out our guides or get in touch!