£125,000 buy-to-let mortgage: payments and rent needed
What a £125,000 buy-to-let mortgage costs each month at different rates, and the rent you'd need to get it.
Key facts
- At 5%: £521 a month interest-only, £731 repayment (25 years).
- Rent needed (5.5% stress): about £716 (125%) or £831 (145%) a month.
- At 75% loan-to-value: a property of about £166,667.
- Lenders' stress rates and cover ratios vary; a broker can confirm.
Monthly payments on £125,000
At 5%, a £125,000 buy-to-let mortgage costs £521 a month interest-only, or £731 on a 25-year repayment basis. Every half-point on the rate changes the interest-only payment by £52 a month.
| Interest rate | Interest-only a month | Repayment (25 years) a month |
|---|---|---|
| 4% | £417 | £660 |
| 4.5% | £469 | £695 |
| 5% | £521 | £731 |
| 5.5% | £573 | £768 |
| 6% | £625 | £805 |
| 6.5% | £677 | £844 |
| 7% | £729 | £883 |
Rent needed to pass the lender test
Using a typical stress rate of 5.5%, lenders would want monthly rent of at least £716 at 125% cover (basic-rate taxpayers and companies) or £831 at 145% (higher-rate taxpayers). Lenders' figures vary.
| Rent cover | Minimum monthly rent | Minimum yearly rent |
|---|---|---|
| 125% | £716 | £8,594 |
| 145% | £831 | £9,969 |
Deposit and purchase price
At 75% loan-to-value, a £125,000 mortgage suits a property costing about £166,667, with a £41,667 deposit. Stamp Duty on that buy-to-let would be about £9,167 in England. See the Stamp Duty calculator.
Other loan sizes: £75k · £100k · £150k · £175k · £200k · £250k · £300k
Sources
- GOV.UK: Tax relief for residential landlords, how it's worked out
- GOV.UK: Stamp Duty Land Tax residential property rates
Sources last checked 10 November 2026. See all our sources and how we keep pages up to date.