Mortgage Calculator: How much rent should I charge?
The calculator will help you work out the minimum rent you should be charging your tenants in order to cover your mortgage costs. If the rental payments are too high and you are unlikely to find tenants then you are paying too much for the property.
In order to borrow £ on a property worth £ you will need rental income of at least £ per month.
A lender will require you have a deposit of at least 15% on a buy to let mortgage, please increase your deposit to at least £
- Application Fee can be added to loan provided normal lending limits are met
Early Repayment Charge
5.00% of loan amount redeemed to be paid until 31-Aug-2018; then 4.00% of loan amount redeemed to be paid until 31-Aug-2019; then 3.00% of loan amount redeemed to be paid until 31-Aug-2020; then 2.00% of loan amount redeemed to be paid until 31-Aug-2021; then 1.00% of loan amount redeemed to be paid until 31-Aug-2022
- Application Fee can be added to loan without conditions
Early Repayment Charge
3.00% of loan amount redeemed to be paid until 31-Jul-2019; then 1.00% of loan amount redeemed to be paid until 31-Jul-2020
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are updated on a regular basis however due to the dynamic nature of the market some product details and rates may be out of date.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.
Speak with a mortgage advisor from TurnKey Mortgages.
What might determine the amount of rent you need to charge?
Size of the Loan
The amount you can borrow is normally linked to the rental income you expect to receive, though lenders often expect rental income to exceed the mortgage payment by a about a quarter to account for the extra costs involved with letting, including insurance, maintenance, agent fees, and periods of vacancy between tenants.
Property Type and Area
You need to find the right balance when setting the level of rent on your property. If you set the rent amount too low, you are unlikely to maximise the investment on the property. Setting the level too high, on the other hand, risks pricing yourself out of the market and leaving the property untenanted.
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.
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