Calculators

The maximum amount that you can borrow is linked to the amount of money that you expect to receive from the rent. Use Best Buy to Let calculator to get an estimate of how much you could borrow based on your current financial situation.

When measuring affordability for buy-to-let mortgages, lenders stress test applications against mortgage rates rising to 5% and sometimes to 5.5%, even if the agreed final rate is lower. This allows them to guard against unexpected rises in costs for landlords. Lenders also typically require a ‘buffer’ of 125% – i.e. the rental income each month must be 125% of the mortgage repayments.

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Stamp duty is charged when property transfers from one owner to another. This HMRC tax changes depending on value of the property and whether you are a first time buyer or not. The stamp duty also varies if you are buying the property for residential or letting purposes. In some circumstances you may be exempt from paying it. From April 2016 Stamp Duty liability for anyone purchasing an additional property has increased.  The majority of buy to let purchases no attract an additional 3% stamp duty.  Purchases of properties £40,000 or less are not liable for stamp duty.  Above this threshold, the higher stamp duty rate will apply unless your total individual ownership is limited to a single dwelling i.e. you do not already own other residential property.

If you are considering to apply for a loan for buy to let property our minimum rent calculator is a good start. You can use it to estimate the minimum rent required for a buy-to-let mortgage. The calculator is a generic guide and individual circumstances will dictate what mortgage options are available to you.

When measuring affordability for buy-to-let mortgages, lenders stress test applications against mortgage rates rising to 5% and sometimes to 5.5%. This applies even if the agreed final rate is lower to guard against unexpected rises in costs for landlords. Lenders also typically require a ‘buffer’ of 125% – i.e. the rental income each month must be 125% of the mortgage repayments.

If you’re thinking about making the next step, please give us a call and our expert will be able to provide you with more detailed information.