Tembo, the digital mortgage broker, has launched a new buy-to-let tool which aggregates data from over 50 lenders to calculate a landlord’s true affordability.
The tool also generates a personalised buy-to-let plan which includes live interest rates and details of monthly repayments.
Tembo’s online planning tools also show users specialist options including top-slicing (where landlords use their own income in combination with rental income) to boost their borrowing power.
Tembo is the only online platform where landlords can combine multiple income sources to calculate affordability.
Tembo’s tool caters to all three main types of buy-to-let mortgages for both purchases and remortgage, including investment buy-to-let, regulated/family buy-to-let and let-to-buy (accidental landlord).
Users can specify their preferences, for example, whether they want a fixed or tracker rate deal, how long they want to fix for, the mortgage term (up to 40 years) and the repayment type (capital repayment, or interest-only).
Research earlier this year revealed that one in three landlords could be forced to sell up because they can’t afford to remortgage their rental properties.
For buy-to-let owners hit by changing tax rates and rising interest rates, the instant digital affordability platform is likely to be a useful tool as they try to understand the viability of remortgaging.
Eddie Ross (pictured), co-founder and chief product officer at Tembo, said: “We’ve seen the market become increasingly restrictive for buy-to-let affordability in the past year, a change that’s forced many landlords to consider selling up.
“We know it’s not easy to build a true understanding of one’s affordability through a digital experience.
“By combining the rental yield with all of an individual’s other income sources (pension, employment, benefits etc), we build a more nuanced and accurate picture, so they can make an educated decision.”