Using a Buy To Let Mortgage Calculator

If you are going to use a mortgage calculator for buy to let purposes you firstly need to make sure you use one that is designed specifically for calculating buy to let mortgages. There are subtle differences between the way a standard mortgage and a buy to let mortgage are calculated and using the wrong type of online calculator can give you a false result.

You will also want to find a comprehensive mortgage calculator for buy to let purposes as there are several extra factors the calculator needs to consider when calculating the amount of mortgage you can afford and the best deal available e.g. the amount of deposit you have available, the achievable rent etc.

Using the Buy To Let Calculator

Once you have found a suitable mortgage calculator for buy to let mortgages you can quickly find the best buy to let mortgage deal available. Most comprehensive calculators ask for the following information at the very least:

  •  Whether you want a variable, discounted, fixed or lifetime mortgage deal. By choosing lifetime the mortgage calculator gives buy to let mortgage options with a good rate that runs for the life of the mortgage i.e. no gimmicks and no added extras you don’t need.
  •  The length of time you want your mortgage to run for. This is normally no less than 10 years and no more than 25 but exceptions can be made.
  •  The property value or the purchase price, whichever is lower. If you are using a mortgage calculator for buy to let remortgages you’ll have to enter the estimated value of the property.
  •  The amount of the mortgage request. This will be equal to the purchase price minus the deposit you intend to put on the property. Buy to let mortgages generally require a deposit of between 20% and 40% of the purchase price.
  •  The projected gross monthly rental income. To find out this figure you can either use a buy to let calculator designed for the job or visit the Rent Service website and look up the Fair Rent for the property value.

Once you have inputted these figures the mortgage calculator will automatically search through and find the best buy to let mortgage deals based on your finances. If the calculator thinks the mortgage amount you have asked for is unreasonable based on the other figures it will return no results and ask you to put your details in again.

Using a mortgage calculator for buy to let mortgage searches can save you a lot of wasted hours. Make a point of checking it is a buy to let mortgage calculator before you start though, just so you don’t find yourself in a state of confusion later on when you decide which mortgage to apply for.