Reverse mortgage calculator

[Silverage]

Does anyone know of a mortgage calculator that works "backwards"? That is to say you put in what monthly repayments you want and then it lets you play around with the period and amounts of mortgage you could get against those repayments.

My partner has a property which looks like it may take a while to sell but would rent instantly. What we want to look at is what sort of mortgage she could raise against it to allow the rental income to make the monthly repayments.

All I could find with my search was calculators based around equity release, which is not what she wants.

[Sarnie]

Try this one;

https://www.coventrybuildingsociety.co.uk/intermed...

[Panamax]

Silverage said:

My partner has a property which looks like it may take a while to sell but would rent instantly.

Don't forget to watch out for CGT implications where a main residence gets rented out. I believe 9 months is the current threshold.
https://www.gov.uk/tax-sell-home/let-out-part-of-h...

[Silverage]

Panamax said:

Silverage said:

My partner has a property which looks like it may take a while to sell but would rent instantly.

Don't forget to watch out for CGT implications where a main residence gets rented out. I believe 9 months is the current threshold.
https://www.gov.uk/tax-sell-home/let-out-part-of-h...

Thanks for that, but it would no longer be her main residence. We’re planning to live together in a new (to us) third house.

[Silverage]

Sarnie said:

Try this one;

https://www.coventrybuildingsociety.co.uk/intermed...

Thanks. That almost worked. It told us how much she could borrow, but not how long it would be over.

[Mr Pointy]

Would this one come close?
https://www.vertex42.com/Calculators/home-affordab...

There are some others but I don't think they are what you are after:
https://www.vertex42.com/Calculators/mortgage-calc...

[POIDH]

Silverage said:

Does anyone know of a mortgage calculator that works "backwards"? That is to say you put in what monthly repayments you want and then it lets you play around with the period and amounts of mortgage you could get against those repayments.

My partner has a property which looks like it may take a while to sell but would rent instantly. What we want to look at is what sort of mortgage she could raise against it to allow the rental income to make the monthly repayments.

All I could find with my search was calculators based around equity release, which is not what she wants.

Not just GCT, but income tax, overheads, new regulations about energy efficiency, and that most lenders expect rent to be 125% of mortgage payment (etc) are really putting the squeeze on any returns from rental properties. I bailed a couple of years ago and I am glad I did, it just was not the return I needed, and I have made more income through paying down own house mortgage and investing both in cash ISA and some S&S ISA's.

[ThingsBehindTheSun]

POIDH said:

Not just GCT, but income tax, overheads, new regulations about energy efficiency, and that most lenders expect rent to be 125% of mortgage payment (etc) are really putting the squeeze on any returns from rental properties. I bailed a couple of years ago and I am glad I did, it just was not the return I needed, and I have made more income through paying down own house mortgage and investing both in cash ISA and some S&S ISA's.

And the secondary stamp duty on the property you are going to buy. I bought my BTL 9 years ago, if I had my time again I would have just put £20K a year in a stocks and shares ISA instead. I would have made more money and had zero hassle (or future CGT when I sell it)

[Sarnie]

Silverage said:

Thanks. That almost worked. It told us how much she could borrow, but not how long it would be over.

It doesn't make any difference how long it would be over............that's up to you.

[Silverage]

Sarnie said:

Silverage said:

Thanks. That almost worked. It told us how much she could borrow, but not how long it would be over.

It doesn't make any difference how long it would be over............that's up to you.

How so, if the monthly payments and the amount borrowed are fixed, surely the time it would take to repay the mortgage (on a repayment basis) must be fixed as well?

[MitchT]

I'd be interested to see a calculator that works out what you can pay for a house to not exceed your budget after the stamp duty has been added on. Say your total budget is £500k, how much could you actually pay for the house to have spent £500k including the stamp duty.

[Mr Pointy]

MitchT said:

I'd be interested to see a calculator that works out what you can pay for a house to not exceed your budget after the stamp duty has been added on. Say your total budget is £500k, how much could you actually pay for the house to have spent £500k including the stamp duty.

Look at the one I linked to - it has a line for "variable closing costs". It's a bit American but you can adapt it

[OutInTheShed]

https://www.xe.com/en-eu/mortgage-calculator/unite...

You can put in different terms and interest rates.

It's all a bit false though, because if inflation.
Also, not knowing what interest rates will be at any time in the future.

If you've got a mortgage over a long term, or even interest only, you can always pay it off sooner if inflation allows you to bump up the payment.

I took out a mortgage when rates were about 9%. As rates fell, I just kept paying the same every month.
I could have upped my payment in line with inflation, but I chose to put some into SIPP and ISA instead.

[Sarnie]

Silverage said:

How so, if the monthly payments and the amount borrowed are fixed, surely the time it would take to repay the mortgage (on a repayment basis) must be fixed as well?

No, this is a BTL calculator. It gives you the amount you can borrow, based on the rental value, it's up to you how many years you have the mortgage over.

[eliot]

MitchT said:

I'd be interested to see a calculator that works out what you can pay for a house to not exceed your budget after the stamp duty has been added on. Say your total budget is £500k, how much could you actually pay for the house to have spent £500k including the stamp duty.

chatgpt could write an excel spreadsheet to do that

[Dr Amatisation]

https://bretwhissel.net/amortization/