fbpx

Mortgage Advice Experts

Menu
  • Home
  • Videos
  • Mortgage Calculators
  • Residential
    • Mortgage Deals
    • First Time Buyer
    • Remortgage
    • Right to Buy Mortgage
    • Bad Credit Mortgage
    • Self Employed
    • High Income Multiple
    • Help To Buy Mortgage
    • Gifted Deposit
    • Foreign Nationals
    • Debt Consolidation
    • Equity Release
    • Close
  • Buy to Let
    • Buy to Let Mortgage Deals
    • Buy to Let Tips
    • BTL 80% Loan to value
    • Buy to let Remortgage
    • Let to Buy
    • HMOs
    • Buy to Let with Bad Credit
    • Limited Company
    • Portfolios
    • Holiday Lets
    • Ex Pats
    • Rent to Family Memeber
    • DSS Tenants
    • Into Retirement
    • Foreign Nationals
    • Inherited Property
    • Close
  • Bridging Loans
    • Commercial Mortgage Tips
    • Bridging Loans Explained
    • Why use Bridging Finance
    • Bridging Finance Rates
    • Auction Finance
    • Auction Finance Rates
    • Non Standard Commercials
    • Development Finance
    • Close
  • Protection
    • Will Writing Service
    • Probate Services
    • Close
  • Testimonials
  • About Us
    • Why Niche Advice
    • Our Fees
    • Testimonials
    • Blog
    • Join our Team
    • Privacy Notice
    • Terms and Conditions
    • Close
  • Contact Us
You are here: Home / Mortgages / Buy to Let Mortgage / Best rental calculation for buy to let mortgage

by Payam Azadi

Best rental calculation for buy to let mortgage

buy to let limited company mortgageBorrow more on a buy to let mortgage with one of the best rental calculation products on the market

Payam AzadiWhich lender has the Best rental calculation for Buy to Let Mortgages?  The answer is things change all the time but below is one of the best products currently on the Buy to Let Market to help with purchase and remortgages. As I have previously posted Buy to let mortgage products have had to become more inventive since the Prudential Regulation Authority (PRA) review in January this year, to make mortgages fit on rental calculations. Competition is fierce to win buy to let business as taxation changes have slowed the market, and products with the maximum rental calculations have become the battle ground.

Foundation Homeloans are latest Buy to Let Lender to press their foot down on the accelerator with the launch of a 3.29% five year fixed rate, with the rental coverage based on the pay rate to maximise gearing potential.

How does this pay out in practise? Well the market generally seems to be adopting 145% coverage based on a notional interest rate of 5.5% following the PRA’s findings, so below is an example of the difference:

Best rental calculation for buy to let mortgage

Borrowing potential Table

Rental per calendar month
Typical market position
145% @ 5.50%
Foundation Homeloans
145% @ 3.29%
Additional borrowing potential

£500
£75,235
£125,775
£50,540

£750
£112,850
£188,650
£75,800

£1,000
£150,470
£251,550
£101,080

£1,500
£225,770
£377,315
£151,545

£2,000
£300,940
£503,100
£202,160

The rental further improves if the property is bought inside a limited company framework as the rental coverage factor drops to 125%.


Example Product Rate and Fees – Best Buy to Let Mortgage Rental Calculation Coverage

Initial Rate: 3.29%
Subsequent: 4.79%
The overall cost for comparison 4.62% APRC

The total amount you must pay back, including the amount borrowed is £419,264

Features / description: Lender applies a rental cover of 145% at the payrate to maximise your borrowing potential.

Type and initial benefit period Fixed until 30/04/2019
Minimum deposit / equity: 35%
Valuation fee £370
Booking fee £125
Lender arrangement £3900
Telegraphic transfer / CHAPS fee £35
Legal fee £750
Early repayment charge 5/4/3/2/1% of the amount repaid in the fixed period

Make an enquiry Online

Niche Advice offers appropriate advice on buy to lets including ideas on how to get the maximum mortgage so if your looking at the Best rental calculation on buy to let mortgages please. For more information complete the Online form under our Contact section on this website or call T: 020 7993 2044.


Any property used as security, which may include your home. may be repossessed if you do not keep up repayments on your mortgage


Important Information

Residential and Buy to Let Mortgages

Rates current as at 21/06/2017 . The overall cost for comparison is based on a purchase price of £300,000 over a 25 year term. The Right-to-Buy example is based on a discounted purchase price of £150,000. Repayment for Residential and Interest only for Buy-to-let (unless otherwise specified). Eligibilty will depend on your own personal circumstances.

KEY – ERC = Main early repayment charge.

The purpose of this web is for information only and is based on a fictitious illustrative scenario. It does not constitute a Mortgage Offer in any way.

It is essential that you seek independent mortgage advice as a suitable product will be based on your own individual circumstances. An interest rate should not be read in isolation, and you should refer to your personal key facts illustration and Mortgage Offers for full terms and conditions. If anything is unclear it should be discussed fully with both your mortgage and legal advisors before entering into a mortgage contract with the lender.

The information contained herein is based on research through the Trigold (IRESS UK) sourcing system. When first published to this site the data is normally 24 hours behind real time, and may or may not still be available.

A first charge over your property is required as security for the loan.

The formal mortgage offer of an advance will be subject to a valuation and other satisfactory references.

 

 

Payam Azadi

Author: Payam Azadi

Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.

Twitter Facebook Linkedin

Filed Under: Buy to Let Mortgage

Proud to be sponsors

Personal Name or Limited Company?

https://www.youtube.com/watch?v=mtzmiikdpdI&t=110s

Contact Us

Our Fees

Why Niche Advice

Mortgage Deals

Tools / Calculators

Latest News / Blog

Free Credit Report from checkmyfile

Try it FREE for 30 days, then £14.99 a month - cancel anytime
Payam Azadi

Time to Fix your Mortgage Express Rosinca Mortgages Buy-to-let Trackers:

It may be time to come off the Tracker rates of Mortgage Express Rosinca Mortgages Is now the right time to switch your buy-to-let mortgage from Mortgage Express (Rosinca Mortgages) variable … [Read More...]

Payam Azadi

Student Let Mortgage for Landlords

Student Let Mortgage products explained for new and existing Buy to Let landlords within the student accommodation sector. How we can help? Access to the Whole of Market Totally Independent from … [Read More...]

Payam Azadi

Buy To Let Foreign Nationals Tier 1 Tier 2 Visa

Personal names and Limited Company Buy To Let Mortgage for Foreign Nationals In this article, I explore the options for foreign national buy to let mortgages.The text is aimed at mortgage … [Read More...]

Choosing the right Solicitor for your limited company buy to let mortgage

Should I take the free legal scheme offered by my mortgage provider?

Mortgage Conveyancing explained

AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.

If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.

Niche Advice Limited is a Credit Broker and does not lend money directly to clients. Niche Advice Limited is authorised and regulated by the Financial Conduct Authority. FCA Number: 750263.

Commercial Buy-to-Let and commercial mortgages are not regulated by the Financial Conduct Authority.

Our Fees

Click here for our fees structure. A full detailed fee plan will accompany all our quotes.

Niche Advice Limited has a commercial arrangement under an affiliate programme with Check My File and is remunerated for referrals.

Terms and Conditions

If you wish to register a complaint, please write to us on the details below or call us on: 020 7993 2044.

Correspondence Address: Niche, Unit F6, The Addington Business Centre, Vulcan Way, New Addington, Surrey CR0 9UG.

A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234567.

Site Terms and Conditions
Customer Privacy Notice

niche youtube

CONTACT NICHE ADVICE
Tel: 020 7993 2044

Registered Office: Niche, Unit F3, The Addington Business Centre, Vulcan Way, New Addington, Surrey CR0 9UG. Registered in England & Wales. Company registration number: 06599033.

Members of The Financial Intermediary & Broker Association - Number SBS36389

logo

© 2022 · Niche Advice Limited · Site Designed by Niche Advice Design Team

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}