Buy To Let Remortgage Calculator
Using a buy to let remortgage calculator can help you compare a wide range of buy to let mortgage options, whether you are a seasoned landlord with a property portfolio or just starting out in the world of residential letting.
Differences between a buy to let remortgage and a residential remortgage
In general terms, buy-to-let remortgages are quite similar to residential remortgage deals – but there are a couple of crucial differences which you should be aware of when calculating your total budget for a buy to let property purchase.
Buy-to-let mortgages require a larger deposit than standard residential mortgages. While you can obtain a residential mortgage at up to 95% loan to value (LTV) in some cases, many buy to let mortgage providers only offer this type of mortgage up to around 75% LTV.
You can use the free mortgage calculator above to help you find a buy to let mortgage that offers the best LTV for your needs.
Another key difference between residential mortgages and buy to let mortgages is that your potential rental income will be taken into account by the lender when assessing affordability. You will need to demonstrate to your potential mortgage lender that that the rent you propose to charge will cover your repayments on the mortgage by at least 125%
Points to consider when choosing a buy to let remortgage
Bear in mind that property prices can fall as well as rise and that the returns from buy to let properties are not guaranteed. You will also need to consider that tenants may not always be readily available to fill your property.
Some letting agents offer guaranteed monthly payment to landlords even if the property is unoccupied, so this could be an option to factor in when calculating your buy to let mortgage costs. As with other types of mortgages, buy to let mortgages often incur administration fees, as well as other charges such as survey fees, legal fees, and DIY costs – so it’s vital to incorporate these considerations into your budget when choosing a buy to let mortgage.