Buy To Let Mortgage Calculator

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Buy To Let Mortgage Calculator

Calculate your buy to let mortgage instantly. Free, accurate tool showing monthly payments, rental yield, ICR stress test, and cash flow for landlords.

🏘️ Landlord Tool
📊 Rental Yield
🧮 ICR Stress Test
📱 Mobile Friendly

Calculate Your Buy To Let Mortgage

Enter your property value, deposit, mortgage rate and expected rent to see your monthly payment, rental yield, and whether your rent passes a typical lender ICR stress test.

Interest-Only: Payment = Loan × Rate ÷ 12  |  ICR = Monthly Rent ÷ Stressed Interest Payment
The core formulas this buy to let calculator applies

Mortgage Details

Enter your figures to see your full BTL mortgage breakdown

🏠 Property & Loan
💷 Rental Income
Lenders typically require rent to be 125–145% of the interest payment at a stressed rate, often higher than your actual mortgage rate.

BTL Mortgage Results

Your monthly payment, yield, and stress test outcome

Typical ICR Requirements

Interest Coverage Ratio requirements commonly used by UK buy to let lenders, which vary by borrower tax status.

Borrower Type Typical ICR Typical Stress Rate
Basic-rate taxpayer, individual125%5.5% or pay rate + margin
Higher-rate taxpayer, individual145%5.5% or pay rate + margin
Limited company / SPV landlord125%5.5% or pay rate + margin
5-year fixed rate product125–145%Often pay rate (no extra stress)
⚠️ Important Note: ICR requirements and stress rates vary significantly between lenders and change over time. This calculator uses generic figures for illustration — always confirm exact criteria with your lender or mortgage broker.

Buy To Let Calculator FAQ

Everything you need to know about buy to let mortgages, rental yield, and lender stress tests.

For an interest-only buy to let mortgage, the monthly payment is simply the loan amount multiplied by the annual interest rate, divided by 12. For a repayment mortgage, an amortisation formula is used that includes both interest and capital repayment over the mortgage term.

Gross rental yield is the annual rental income divided by the property’s purchase price or value, expressed as a percentage. It gives a quick measure of a property’s income return before costs such as mortgage interest, maintenance, and management fees are deducted.

The Interest Coverage Ratio (ICR) stress test is used by lenders to check that expected rental income comfortably covers mortgage interest, typically requiring rent to be at least 125 to 145 percent of the interest payment, often calculated at a higher ‘stressed’ interest rate for safety.

Many landlords choose interest-only buy to let mortgages because they keep monthly payments lower, with the capital typically repaid when the property is eventually sold or refinanced, though repayment mortgages are also available and reduce the loan balance over time.

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