Are you thinking of renting out your current property to make some money and then moving to a new family home? This calculator will assist you in determining whether a lease-to-own property is a suitable option for you. A buy-to-let mortgage calculator can help you figure out how much you can borrow from us for a rental property. This calculator does not calculate the return on investment (ROI) or yield of a buy-to-let rental property.
Because letting you buy can be a complicated process, we recommend that you use the calculator just as a guide before speaking with one of our specialist mortgage advisors. In our in-depth tutorial, you’ll learn everything you need to know about this mortgage choice. Remember that if you have any questions, you may speak with one of our mortgage consultants at any time.
What is a Let to Buy Mortgage, and how does it work?
The frustrating and time-consuming element of the process for many people shopping for a new home is selling their current residence. With a let-to-buy mortgage, you can buy a new house while renting out your old one. The purchase to let market has grown dramatically in recent years, owing to increased demand for rental property in many parts of the UK.
You essentially remortgage your current house to a buy to let mortgage and remove the equity to use as a deposit on a new residential property that you want to relocate to using a let to buy mortgage.
To use the calculator, what information do you need?
We’ll ask how many people are applying, as well as other information about their income and expenses. We’ll need to know how much you want to borrow, the valuation of the property you wish to use as collateral, and the expected rental income. We’ll also inquire about any existing buy-to-let mortgages you have.
What is the similarity between a Buy to Let and a Let to Buy?
If you want to rent out a house, you can use one of these mortgage types. If you wish to rent out a home that you already own and live in, you can get a mortgage.
If you want to buy a property to rent out, you’ll need a buy-to-let mortgage. The truth is that they are very similar, but lenders will often look at them differently, have different lending criteria, and even offer different deals.
What is the maximum amount I could borrow for a Buy to Let mortgage?
Unlike a residential mortgage, where the amount you can borrow is determined by your income and outgoings, a Buy to Let mortgage is based on the expected rental revenue from the property. Lenders normally require rental revenue to equal at least 125 percent of monthly mortgage payments (on an interest-only basis), and in certain cases, up to 145 percent, depending on the lender’s requirements.
Most lenders will also ask that you have a source of income. To see how much you could borrow, use the Buy to Let calculator.
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