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How much can I borrow on a buy to let mortgage?

This calculator will help you understand the sort of deposit you will need to put down against a buy-to-let property. In a buy-to-let situation a lender will also take into account the income the property will generate, as well as your personal income/assets (or business income/assets if purchasing within a company structure). They will need to see that you could still afford to pay the mortgage if the property is untenanted.

Purchase price of property

 

Monthly rent

 

A conservative estimate of what you could borrow, based on the information you have provided the mortgage calculator is

£

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Your home may be repossessed if you do not keep up repayments on your mortgage. The rates and products displayed within these tables are updated on a regular basis however due to the dynamic nature of the market some product details and rates may be out of date. We therefore do not take any responsibility for the accuracy of the information supplied within the table although we will always make our best endeavour to ensure that the information provided is as accurate as possible. You should always check rates and terms with the product provider. The telephone-based mortgage advice service is provided by TurnKey Mortgages Limited. Registered office: St Crispins House, Duke Street, Norwich NR3 1PD. TurnKey Mortgages Limited are authorised and regulated by the Financial Conduct Authority. Their FCA number is 537424.


How much can I borrow on a buy-to-let mortgage?

The amount you can borrow on a buy-to-let mortgage is usually determined by two principal factors:

Rental Income

As a new landlord, the amount you can borrow will almost certainly be linked to the rental income you expect to receive from the property once it is tenanted. It is therefore useful to investigate the realistic rental prices for the type of property in the area it is located.

Lenders often prefer the rental income to exceed the mortgage payment by around a quarter, as a proportion of this rental income is expected to go towards costs such as maintenance, insurance, and agents’ fees. (Find out more on our buy-to-let mortgage page.)

Loan-to-Value

The amount that you can borrow is also normally limited to a maximum of 75% of the property value, which is more restrictive than most other mortgage types. Landlord mortgages usually require a deposit of at least 25%. Only experienced landlords are likely to receive a concession on this.

This might affect the rent you need to charge to make the property affordable. Check out our calculator 'how much rent to charge' for more details.

 

 

As always, we recommend that you seek professional advice if you are unsure which type of mortgage is right for you and that all of the information provided above is for use as an overview only and should not be the basis for your mortgage decision.