Buy to Let Mortgage Calculator 15 Deposit
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Reviewed by Calculator Editorial Team
This buy to let mortgage calculator helps you determine your potential mortgage amount, monthly payments, and loan-to-value ratio when making a buy-to-let property purchase with a 15% deposit in the UK.
How the Buy to Let Mortgage Calculator Works
When purchasing a property for buy-to-let investment, your mortgage amount is calculated based on the property value and your deposit. A 15% deposit means you put down 15% of the property's value, and the remaining 85% is financed through a mortgage.
Key Considerations
- Buy-to-let mortgages typically have higher interest rates than residential mortgages
- You'll need to meet strict lending criteria, including good credit history
- Landlord insurance is required for rental properties
- You may need to pay stamp duty on the purchase
The calculator uses the following inputs to determine your mortgage details:
- Property value - The total purchase price of the property
- Deposit percentage - The percentage of the property value you're putting down (15% in this case)
- Mortgage term - The length of the loan in years
- Interest rate - The annual percentage rate (APR) for the mortgage
Formula Used
The calculator uses the following formulas to determine your mortgage details:
Mortgage Amount
Mortgage Amount = Property Value × (1 - Deposit Percentage)
Monthly Repayment
Monthly Repayment = [Mortgage Amount × (Interest Rate/12)] / [1 - (1 + Interest Rate/12)^(-Term × 12)]
Total Repayments
Total Repayments = Monthly Repayment × Term × 12
Loan-to-Value Ratio
Loan-to-Value Ratio = (Mortgage Amount / Property Value) × 100
Worked Example
Let's look at an example to see how the calculator works in practice.
| Input | Value |
|---|---|
| Property Value | £250,000 |
| Deposit Percentage | 15% |
| Mortgage Term | 25 years |
| Interest Rate | 4.5% |
Using these inputs, the calculator would determine:
| Output | Calculation | Result |
|---|---|---|
| Mortgage Amount | £250,000 × (1 - 0.15) = £212,500 | £212,500 |
| Monthly Repayment | Calculated using the formula above | £1,125 |
| Total Repayments | £1,125 × 25 × 12 = £324,375 | £324,375 |
| Loan-to-Value Ratio | (£212,500 / £250,000) × 100 = 85% | 85% |
This example shows that with a £250,000 property and a 15% deposit, you would need a £212,500 mortgage at 4.5% interest over 25 years, resulting in monthly payments of £1,125.
Frequently Asked Questions
What is a buy-to-let mortgage?
A buy-to-let mortgage is a loan specifically for purchasing a property with the intention of renting it out. These mortgages typically have higher interest rates and stricter lending criteria than residential mortgages.
What is the difference between a buy-to-let and a residential mortgage?
The main differences are higher interest rates, stricter lending criteria, and the requirement for landlord insurance. Buy-to-let mortgages also typically require larger deposits.
What is the loan-to-value ratio?
The loan-to-value (LTV) ratio is the percentage of the property's value that is being financed through the mortgage. For a 15% deposit, the LTV would be 85%.
Can I get a buy-to-let mortgage with a 15% deposit?
Yes, a 15% deposit is a common requirement for buy-to-let mortgages, especially for first-time landlords. However, you'll need to meet strict lending criteria and may need to provide additional documentation.