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Here is why you might refuse to use a mortgage calculator for your next property purchase


One of the most common mistakes made by newbie investors when starting out is not taking into account all the ‘real’ cost of investing in property. They base their purchase decision on the rate of mortgage repayments and ignore the other costs that would impact profit.

Here are the costs that aren’t included in a typical mortgage calculator

When you trying to figure out the ‘true’ rate of return on your investment, you need to think about all the other costs that you might incur during and after purchasing the property. These costs include:

Maintenance costs

Think about how much you may need to pay out to maintain your property in its best condition. Many landlords forget to include this in their mortgage calculator UK. Paying attention to property maintenance will help to attract the best tenants.


If you buy a property that needs refurbishing (and decoration) before it can be rented to tenants, you should allow for these costs up-front. You may also need to refurbish the property on an annual basis or between tenants.

Landlord’s Insurance

Landlord’s insurance is a must-have for the property investor who rents their properties.

Other costs

There are other costs to consider, too. These include:

  • Property management costs
  • Letting agent’s fees
  • Cleaning costs (though you may have included these in maintenance costs)
  • Service fees
  • Advertising costs
  • Vacant periods

The risk of using the wrong buy-to-let mortgage calculator

Being a successful property investor requires an investment strategy. It also needs wariness of costs and income. A study earlier this year found that one in eight landlords forget to factor in extra costs when calculating their potential returns. Half of landlords fail to consider how much any maintenance and repairs will cost.

Though the mortgage payments will be the largest part of your costs, a buy-to-let mortgage calculator that doesn’t allow for other costs will mean you over-estimate your profit by 50% or more.

To make the correct calculations, use the Property Deal Calculator to the right of this blog: you’ll be glad you did, and be in a better position than other investors who use only a mortgage calculator to work out their potential profit.

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