Interest cover ratio, and the rate the rent is tested against. UK lenders use 125% for a basic-rate taxpayer, 145% for higher rate, stressed at the higher of product + 2% and 5.5%.
The revert rate is a guess — nobody knows what they will be offered in five years. A single assumed number gives one confident-looking payment and hides how much it moves. The dashed line is what you pay during the fix; the gap up to the curve is the step.
| Period | Payment | Principal | Interest | Balance |
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Start with price, down payment, rate, and term — the four numbers that set principal & interest. Open Taxes, insurance & PMI when you want a fuller monthly picture. Drag the balance curve to inspect any month; compare 15 / 20 / 30-year cards for the interest trade-off; expand the schedule for year-by-year totals.
On a $400,000 home with 20% down, you're financing $320,000. At 6.5% over 30 years, the principal & interest payment is about $2,022/mo.
Over the full term that's roughly $408,000 in interest — more than the original loan. Adding just $200/mo extra to principal pays the loan off years early and saves a five-figure sum in interest. At 10% down, LTV is 90% and this tool layers on estimated PMI until the balance falls to 80% LTV.
Because a buy-to-let is underwritten on the rent, not on your salary. The lender divides the annual rent by the interest cover ratio (125% for a basic-rate taxpayer, 145% for higher rate) times a stress rate (usually the higher of your rate plus 2% and 5.5%). That is the largest loan the rent will service, and it is very often smaller than the loan a 25% deposit implies.
It is the norm, because the payment is lower and the interest is a cost against rental income. The catch is that nothing is repaid: the full balance falls due at the end and you need a plan for it. Switch the toggle off to see the same loan as a repayment mortgage — the monthly cost rises sharply and the total falls.
Usually not. Most buy-to-let lending sits outside Financial Conduct Authority regulation, so the consumer protections attached to a regulated residential mortgage may not apply. The exception is a “consumer buy-to-let”, broadly where you did not set out to be a landlord — an inherited property, for instance.
No. They are representative market values for orientation, so the page starts you somewhere sensible rather than at zero, and every one is editable. They are not quotes, not sourced from any lender, and they go out of date. Use your own figures, or a broker’s, before deciding anything.
Interest is charged on the remaining balance, which is highest at the start. As the balance shrinks, the interest portion of each fixed payment shrinks with it and more goes to principal.
Private mortgage insurance is typically required when you put down less than 20% (LTV above 80%). Many lenders drop it once LTV reaches 80% through paydown — this tool estimates monthly PMI at your chosen rate and stops charging it once cumulative principal brings LTV to 80% of the original price.
Yes — every dollar down is a dollar you don't finance, plus all the interest it would have accrued. Crossing 20% down often removes PMI entirely, which is a step-change in monthly cost.
Closing costs (beyond rough awareness), HOA special assessments, rate adjustments (ARMs), refinancing, discount points, and tax deductibility of mortgage interest. Your lender's figure is the one to trust.
A 15-year loan pays far less total interest, but the monthly payment is higher. The “right” term depends on cash flow and opportunity cost — use the compare cards above for your numbers.
Releases in which this page changed, newest last. Derived from the archived copy of every release, not from notes written afterwards — so it reflects what actually shipped. Site-wide passes are left out; they are in the full changelog.