This is your mortgage calculator for investment property. We have free online mortgage calculators for both repayment and interest only mortgages.
When you're done, we'd be delighted to provide you with a buy-to-let mortgage quote.
This calculator works out the monthly payment on an interest only mortgage. It also works out the monthly payment on a repayment mortgage so you can compare the two. If you're looking for a full amortization schedule, see our repayment mortgage calculator, below.
Investors looking for cash flow will normally buy with an interest only mortgage as the payments are lower and you can offset interest payments against tax.
Always remember that with an interest only mortgage -- as you're only paying interest -- you need to be thinking of how you will pay the mortgage off at the end of the term! Some people use some other form of investment like an ISA as their "repayment vehicle", which is intended to grow sufficiently in value to pay off the loan at the end of the term.
But most property investors simply use property as their repayment vehicle and intend to sell a portion of their stock at the end of the term to pay off the loans on the remainder.
Here at PiB, we provide specialist mortgages and finance to property investors and developers just like you, in partnership with one of the most experienced advisors in the UK. Request a free quote today.
This calculator is for repayment (capital and interest) mortgages. It is an amortisation calculator and shows the amortisation schedule in days or months... whichever you choose.
Amortisation is just a fancy name for how a repayment mortgage is calculated. It's quite a complicated formula but fortunately for us both, the computer does it all for us...
To use the repayment mortgage calculator, you need to know the purchase price of the property, the deposit (down payment), the length of time over which you'll borrow it (mortgage term) and the interest rate.
The graph shows how the "Principal" or Capital payments made (shown in green) increase over time as the Interest (shown in yellow) and the Balance (shown in red) decrease.
Beneath this you'll see the amortisation schedule which shows your mortgage being paid off over time. Scroll to the bottom of the amortisation schedule and you'll see totals for principal (capital) and interest paid over the term.
Remember that the interest rate on most mortgages may change throughout the lifetime of your loan, so these calculators are to be used as a guide only.
When working out your mortgage payments using our mortgage calculators, you need to remember to factor in arrangement fees -- these can vary greatly between lenders.