With Interest rates at an historic low you may be benefiting from low mortgage payments and surplus rents. Whilst this is great in the short term, it's important to understand how future changes may impact your portfolio so you can ensure your business model is sustainable in the long term.
Following nationalisation we are unable to offer new mortgages or 'retention' deals. So, whilst your current interest rate may seem like a good deal now, this may not be the case if interest rates rise in the future.
The calculator below is designed to give you an idea of the maximum interest rate your property or portfolio could sustain based on your current rent and costs. This 'stress test' requires you to identify the income and outgoings associated with your investment property and will help you identify when any changes in the interest rate may cause you issues in the future.
Please note - these calculations are based on an 'interest only' mortgage. If you have a Repayment mortgage you will need to factor in the additional capital that you have committed to paying off your mortgage each month.
Plan your budget now
If you would like to see how future interest rate rises could affect your monthly mortgage payments, then please try our rate rise calculator. Simply enter a few basic details about your mortgage and we will show you what your payments could rise to should rates rise in the future.
See how rate rises could affect you here
Interest Rate Rise Calculator
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If you are concerned that you may struggle to meet your monthly payments in the future then please contact us as soon as possible to see how we can help you.