Mortgage Broker Tools has launched an affordability calculator for landlords.

MBT Affordability previously allowed brokers to check how much owner occupiers could borrow, but the new enhancement will help advisers dealing with buy-to-let clients.

The tool will allow brokers to see how much landlords can borrow based on their own earnings and the income cover ratio of a particular property, whether they are operating as a limited company or as an individual.

Its results draw on the affordability calculators and eligibility criteria of 65 buy-to-let lenders.

Brokers can show clients how their affordability is affected by including personal income as well as property income in the calculations.

BTL Affordability also keeps a record of all cases and results, to provide a compliance audit trail.

It is available as a standalone tool or in a bundle with the residential affordability calculator and there is a one-month free trial.

MBT chief executive Tanya Toumadj says: “Buy-to-let still accounts for nearly 15 per cent of all lending and demand is likely to be particularly high in the coming months as landlords take advantage of the temporary reduction in Stamp Duty. 

“However, affordability calculations are no longer straight forward. 

“It’s often the case that required rental calculations don’t deliver landlords the leverage they want, and an increasing number of lenders provide the opportunity to supplement the ICR with their own income, with products that allow top slicing. 

“Then there are the considerations as to whether a client is borrowing as a limited company or in their own name.

“Until now there has been no easy way for brokers to research how much their landlord clients could borrow across a number of lenders.”