Buy to Let calculation

Lenders will calculate... the amount you can borrow on a given property against the rental income that it can produce. Most lenders insist on the rental income being at least 100-130% (known as the "calculation") of the mortgage payment. If you are using the capital repayment method your mortgage repayment will be higher and you may not be able to borrow as much as if you were using the interest only method.

If you know how much you are likely to acheive in rent you can work out the amount you could borrow using the following calculation, you will need to know the lenders critera:

Rental / calculation x 12 / interest rate

In the event that you intend to purchase a property which does not meet the lenders usual rental assessment we have access to exclusive mortgage schemes which do not use this method of calculation. Please contact us directly to discuss the options available to you.

Back to the Buy to Let Centre

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Smaart Associates is authorised and regulated by the Financial Services Authority (FSA registration number 300530). The FSA does not regulate credit cards, personal loans or some investment mortgage contracts. Some Buy To Let mortgages are regulated by the Consumer Credit Act (CCA).

By following some of the links from this site you may be directed to services provided by a third party. Where this occurs we are not responsible for the information provided and accept no responsibility for its accuracy.

Smaart Associates is the trading name for Smaart Associates Ltd. Registered in England No: 4325522. Loans are subject to status, type and value of property. Insurance may be required. Minimum age 18.

Head office:
Smaart Associates Mortgage Brokers,
MWB Exchange, No 1, Farnham Road,
Guildford, Surrey,
GU2 4RG
 
Mortgage brokers based in Surrey serving England, Wales, Scotland and Northern Ireland (UK)
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Mortgage brokers - Remortgage advice - Buy to Let Mortgage Broker based in the UK. Smaart Associates can be contacted directly through this website or by writing to:
Smaart Associates, 1 Farnham Road, Guildford, Surrey, GU2 4RG.