The buy-to-let calculator allows you to sort through the many available buy-to-let mortgages by putting in the criteria that are relevant to you, leaving only those mortgages that fit your requirements. This should make it much easier for you to compare mortgages, made even easier by the table's clear repayment and rate information.
All you have to do is put in the value of the rental property, then subtract your deposit to get the required mortgage. Your loan-to-value (LTV) will be automatically calculated. Feel free to adjust the term of the mortgage to see how that affects the rates you are offered.
If you'd like to reduce the mortgage on the buy-to-let property over time, you'll want a repayment mortgage. If you're planning to sell the property at a later date and are not too bothered about being able to lower the LTV for remortgaging purposes, an interest-only mortgage might be your preferred repayment option.
Other choices, such as the mortgage type and initial period, will depend on your attitude to risk. If you want to be sure of your repayments, pick a fixed rate. If you're open to some risks, pick a capped mortgage so the rate won't be able to go above a certain upper limit. A tracker mortgage follows the movements of another rate, usually the Bank of England base rate, while a variable mortgage can change rates at any time. Generally, variable rate mortgages have lower rates than fixed deals precisely because they might go up as well as down.
After the initial period ends, your mortgage interest rate will revert to your lender's standard variable rate (unless you choose to remortgage). So, if you want to keep repayment security for as long as possible, pick the longest initial period. Once you've put all your preferences in the buy-to-let mortgage calculator and pressed ‘Update Results’, you will see the mortgages that you have to choose from.
It's easy to see what your initial rate will be, with the table sorted on rate by default. By clicking on ‘APRC’ or ‘Product Fees’, for example, you'll be able to sort the table based on what matters most to you. Then, if you want to know a bit more about the product, you can click 'Details', or if you're happy to go to the next step, click the button.
While some of the buttons above will send you straight to the lender (when they say ‘Go to Site’), a lot of them will simply say ‘Speak to an Adviser’. Clicking on this will send you through to a page that gives you the option to talk to our preferred mortgage broker, Premier Financial Group. You could of course still find these buy-to-let deals by going straight to the provider's website, but there are a few advantages to talking to an adviser.
First and foremost, they're the experts. They will look at your personal circumstances and what you can afford, and try to make sure you don't take out a mortgage that may later become impossible to pay. Additionally, our broker partner looks at the whole of the market, including potentially some deals that aren't available to everyone and therefore not found by our buy-to-let mortgage calculator. Their expertise, combined with their wide view of the market, means that you'll likely be able to get a better deal by going through an adviser.
In exchange for their expertise, advisers will charge a fee. It's important to understand what kind of fee they charge before you agree to anything, but this is no reason to be put off. Not only are our broker partners directly authorised by the Financial Conduct Authority, but they are professionally qualified, so you'll certainly get your money's worth of advice and help. Remember that a mortgage broker works to get you the best deal.
Before using the buy-to-let mortgage calculator, or clicking through to a lender's page, it makes sense to have your figures at your fingertips. If you need further advice, do speak to our preferred expert advisers first.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.