Maximum Loan Amounts with a Buy-to-Let Mortgage
Understanding Buy-to-Let Affordability
When applying for a buy-to-let mortgage, lenders assess how much you can borrow primarily based on your expected rental income – not just your personal salary or credit profile. Typically, the rent must cover 125–145% of your monthly mortgage repayments.
Common Lending Criteria
Most lenders will allow you to borrow between 65% and 75% of the property’s value, though some go as high as 80%. To determine how much you can borrow, they look at:
- Your projected rental income
- The property value and type
- Deposit available (usually 25% minimum)
- Your credit history
- Your personal income (especially if rental income falls short)
Use a buy-to-let mortgage calculator or speak with a mortgage broker to get an estimate based on your situation.
Rental Stress Testing
Stress testing ensures your rental income can withstand interest rate rises. For example, if the rate is 5.5%, lenders might require rental income to be 145% of the repayment amount. This protects them and you in the long term.
Location Impacts Borrowing Potential
In rental hotspots like Manchester, properties tend to produce stronger yields. This can boost how much you’re eligible to borrow. Novellus Property Management helps landlords find the most lucrative letting opportunities in these high-yield areas. Check out our recent guide around Manchester and surrounding areas hotspots.
Secure the Maximum Value from Your Investment
Borrowing more isn’t always the answer – a smart purchase and professional management can deliver better ROI. Our fully managed services ensure your property is always compliant, tenanted, and cared for.
Conclusion: Know Your Numbers – Then Let Novellus Manage the Rest
Understanding how much you can borrow is just the first step. To make the most of your investment, partner with an expert team that takes care of the tenancy, maintenance, legal compliance and more.
📞 Talk to Novellus Property Management today and let’s turn your borrowing potential into a rewarding property portfolio.
