Using a Buy to Let Mortgage Calculator

A buy-to-let mortgage is a common mortgage offered in the United Kingdom. This specific form of mortgage was designed for investors to borrow capital for the purpose of purchasing a property in a private rented sector. When accomplished, the investor would then rent out the property to willing tenants. The amount of capital an investor can borrow is calculated by the property's rental valuation; if the property is considered a desirable place to rent, and thus has a high demand, the investor is more likely to borrow in increased amount of money. Typically, the annual income derived from renting the property out must cover between 120% and 150% of the mortgage repayments. This is needed to allow a surplus of rent to cover both the expected and unexpected costs associated with the ownership of property--for example maintenance, and periods where there are no renters living on the property. A buy to let mortgage calculator can be found online through a simple search. In order to obtain the specific amount borrowed an individual must first fill out a credit report or an income statement with a various real estate agent. Not all agencies offer buy to let mortgages so it is important to first contact the agency in question to inquire about the program, offer, and the specific properties in question. Once the credit report is filed with the chosen real estate agency, the individual will be contacted, and informed of his or her status and ability to partake in a buy to let mortgage. If approved, the individual can utilize but to let mortgage calculator to help estimated amount borrowed. The mortgage calculator is exceptionally simple; this is in large part due to the screening process required before use. The buy to let mortgage calculator only requires an individual to enter the monthly amount of rent charged, and the value of the property in question.