Free Online Buy To Let Mortgage Calculators. No signup required.

Buy to Let Mortgage Calculators

A buy to let property (also known as a “rental property” or “a BTL ”) is an investment in a residential property. Once purchased, the property investor becomes a landlord and rents out the property with the intention of making an annual profit.

Understanding and meeting your monthly mortgage repayments is a critical success factor in buy-to-let. To help you on your property journey, we provide you with two online BTL mortgage calculators. The first calculator deals with interest only mortgages, whilst the second calculator covers interest and capital repayment mortgage.

Calculators

Interest-only mortgage calculator

Total Mortgage Borrowing
Amount:
Length Of Mortgage
Years:
Interest Rate
Annual % rate:
Monthly payments £
Total interest payments £

Copyright: Property Investor Academy

Use Of This Calculator
1. This calculator is suitable for mortgages which do NOT have significant fees.
2. This calculator is NOT suitable for bridging or development finance.
3. The default values used should not be relied upon as indicators of market interest rates.

Capital repayment mortgage calculator

Total Mortgage Borrowing
Amount:
Length Of Mortgage
Years:
Interest Rate
Annual % rate:
Monthly payments £
Total interest payments £

Copyright: Property Investor Academy

Use Of This Calculator
1. This calculator is suitable for mortgages which do NOT have significant fees.
2. This calculator is NOT suitable for bridging or development finance.
3. The default values used should not be relied upon as indicators of market interest rates.

How do buy to let mortgages work?

In the UK property market, most property investors borrow on an interest only basis.  As a result, each month interest is paid on the mortgage. The interest is paid out the rental income received from the tenants.  There are no monthly capital repayments. The capital debt is repaid to the lender upon the final maturity date.

There will be occasions when a capital repayment buy to let mortgage is used and so this is what we have provided two calculators.    

mortgage-calculator-buy-to-let-Vitalii-Vodolazskyi-shutterstock.com.jpg

The loan is secured on the investment property.  In the event where interest or capital are not paid by the borrower, this makes it easier for the lender to take possession of the property and sell it to cover the unpaid amounts.

Why do property investors use interest only mortgages?

With an interest only mortgage, the monthly payments are lower but you don't pay off any of the capital.

Repayment mortgages cost more on a monthly basis. In the early days the bulk of the monthly payment is interest.  However, at the final maturity date the property belongs in full to the property investor.

mortgage-calculator-buy-to-let-Yuriy-K-shutterstock.com.jpg

Benefits

  • Interest only mortgages minimise the required monthly payments. This boosts the financial return on the funds they have personally invested.

  • Property investors can make voluntary capital repayments, generally without financial penalty. Many investors appreciate having this flexibility.

 Disadvantages

  • If the property market falls significantly and no capital repayments have been, then the loan to value ratio will increase.  As a result, the property investor may end up paying significantly higher interest rates due to a lack of competitive remortgage opportunities.

  • If property declines significantly in value and is worth less than the original loan, the property investor will still need to repay the full loan amount upon the final maturity date. Finding that lump sum, which may be substantial, will be challenging for the property investor.

Links to Buy To Let Mortgage websites

The links below are to the major UK buy to let mortgage websites, where you can start a mortgage application.

Next step: assessing investment opportunities

We hope we have helped you, with our calculator tools and commentary, on your journey to fund your next buy to let property investment.

Have you identified a specific investment opportunity? If so, do you want to analyse its income generating potential? if so, please click here for our rental yield calculator.

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Peter D Doherty

Peter D Doherty is the founder of the Property Investor Academy.

A Masters graduate in accounting and finance from Dublin City University, Pete worked in the City of London for 14 years. He held senior finance roles (Financial Controller) in several substantial UK commercial banks. He is a graduate of Macquarie University.

With over 10 years property investing experience, he is the owner of a London based lettings agency as well as proptech consultancy. He regularly contributes to online landlord forums such as Propertytribes and Reddit.  Peter is a member of National Residential Landlords Association (“NRLA”).

https://uk.linkedin.com/in/peter-doherty-tal
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