Calculator 06
Buy-to-let calculator
Landlord lending turns on rental cover, not income. Run it as a purchase, or as a remortgage where you can also raise capital against the equity.
The property and the deal
What are you doing?
£
£
£
£
%
%
%
Monthly cash profit
£328
£1,150 rent less £642 interest-only mortgage and £180 costs
Gross yield
6.90%
Net yield
5.82%
Interest cover
123%
below requirement
Lending test
Loan amount£150,000
Loan to value75.0%
Payment at stress rate 7.50%£938
Rent needed for 125% cover£1,172
Maximum loan on this rent£147,200
Annual profit before tax£3,930
Rental cover is assessed on interest-only payments at the lender's stress rate. Basic-rate taxpayers and limited companies are usually tested at 125%; higher and additional-rate taxpayers face 145%. Tax on rental profit and the loss of full mortgage-interest relief are not modelled here — speak to an accountant.