Advanced affordability calculator: simplifying BTL product comparisons

29 June 2023

Nick Joelson


Mortgage affordability calculators are nothing new, but we have taken it a step further. With the launch of our in-house broker portal, we introduced an interactive buy-to-let affordability calculator over a year ago.

We are excited to announce that we have enhanced the calculator with new user-friendly features, including a compare function that makes product comparisons effortless.

Product comparison made easy

Our updated affordability calculator offers detailed search options for both intermediaries and landlords. You can experiment and explore various products and pricing. Selecting the respective options allows you to determine the maximum loan amount or the minimum monthly rental required.

Refined search filters

To streamline your search, you can filter by product range, product type, property type, and maximum loan-to-value (LTV). Advanced filters are available for purchase or remortgage, new builds, ex-local authority properties, and those located above or adjacent to commercial premises. You can also sort the products based on rates, product fees, product type, property type, maximum LTV, and minimum/maximum loan size.

Effortless product comparison

Once you have selected the products you wish to compare, click the compare button for each one. Enter the property price and desired loan amount, and the calculator will display the Interest Cover Ratio (ICR), borrowing capacity, and associated fees for the chosen products. Alternatively, you can enter the property price and anticipated monthly rental charge to see how much you can borrow.

Variable fee structures for enhanced affordability

To further aid affordability, we have introduced variable interest rate and fee structures. This flexibility allows more landlord borrowers to meet the Interest Cover Ratio (ICR) calculation requirements. By opting for a lower rate and higher fee, landlords can borrow more. Our affordability calculator clearly presents the different options, helping you easily identify the most affordable and suitable product.

Check out our affordability calculator here, it’s really easy to use and a useful tool for intermediaries and your landlord clients.  If you would like to understand more or discuss a case, please contact your local BDM.