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. Please note that the below calculator is for illustrative purposes only and does not constitute advice.
When measuring affordability for buy-to-let mortgages, lenders stress test applications against mortgage rates rising to 5.5% and sometimes higher. This may happen 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. For higher-rate taxpayers this is usually 145%. Most lenders will also lend up to a maximum of 75% of the property value.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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