Free calculator

Buy to let equity release calculator

Your next deposit might already be sitting in your rentals. Put in what the property is worth, what you owe and the rent, and see roughly what a remortgage could release, and whether the value or the rent is what limits it.

Your rental

What it's worth today£Use recent sold prices of similar homes nearby.Mortgage left to pay£Rent a month£

Lender assumptions

Maximum loan to value%Many buy to let lenders go up to 75%.Rent cover the lender wants%The rent must be this much of the mortgage interest. Often 125% to 145%, depending on the lender, your tax position and whether you own through a company.Test interest rate%The rate lenders use for the rent test. Usually higher than the rate you pay. Varies by lender and product.

Could release, before costs£47,500

Equity today£100,000

Loan to value today52%

Loan the value allows£157,500

Loan the rent allows£183,273

The value is what limits the loan here. The rent passes the test at these assumptions.

As a 25% deposit, £47,500 would cover a purchase of about £190,000, before stamp duty, fees and any works.

An estimate from your own figures and assumptions, not a lender decision or advice. Allow for early repayment charges, fees and the higher monthly payment.

See this for every rental you own. The Portfolio Builder checks each property's value against recent local sales and its rent against homes to let nearby, shows your equity and what a remortgage could release, and reminds you before each fixed rate ends.

SEE THE PORTFOLIO BUILDER

How the figures are worked out

Lenders check two things. First, the value: they lend up to a set share of what the property is worth, often 75%. Second, the rent: the yearly rent must cover the yearly mortgage interest by a margin, worked out at a test rate. The loan you can get is the lower of the two.

What you could release is that loan, less what you owe now. Fees, early repayment charges and the higher monthly payment all come off what's left in practice.

Why lenders give different answers

The rent cover and the test rate vary by lender, by product, by your tax position and by whether you own the property yourself or through a limited company. Change the assumptions above to see how much difference they make. A broker can tell you which lenders fit your situation.

Read the guide: the rent test that quietly caps it, and the best time to remortgage. →

General information, not financial or mortgage advice. Your property may be repossessed if you do not keep up repayments on your mortgage. Most buy to let mortgages are not regulated by the Financial Conduct Authority.