Are you looking to purchase property in the future for the purpose of letting it out to tenants? If so there is a tool that can be found online which may be of great use to you while you are doing your initial investigation to find out what exactly you can or cannot afford. The tool is called a buy to let mortgage calculator and there are many places to find them online.

Try out a few different ones as they will give you different results depending on how good they are and also because of the types of information that each different buy to let mortgage calculator will ask you to input.

Here are some places which will allow you to use their tool for nothing:

mortgage-loan-uk.net is the first place that I will give here, their calculator first asks you to enter the purchase price of your buy to let property. This will give you a figure of the loan amount required after a 15% initial deposit default setting. (this can be changed if you would like to pay a larger deposit)

From here you enter your interest rate on your loan and the calculator will give you an estimated figure on the monthly repayment on your mortgage.

Finally you will be asked to enter the lenders rental cover percentage, this will return the figure you need to get in rent to cover the mortgage repayments.

The second place which has a more simple interface on their buy to let mortgage calculator is mortgages.co.uk, if you are just in the early stages of considering a buy to let mortgage then this is likely a better option for you to get general ideas on repayment amounts.

The calculator has an easy to use slide option or you can enter figures directly on the following fields.

Property value.
Initial deposit amount.
Interest rate.
No of years to pay over.

From this information you will be given results on your monthly repayment amounts based on different types of mortgages.

Most of the companies that supply buy to let mortgage calculators are of course hoping that you will purchase online with them but do not rush into anything, especially in a huge investment such as a mortgage.

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Filed under: Investing Software

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