Buy-to-Let Calculator
Explore rental coverage for a buy-to-let mortgage.
Compare the expected rental income with an illustrative lender stress test to understand how the rent may support the proposed borrowing.
Buy-to-let affordability criteria vary significantly between lenders. The stress rate and ICR requirement can therefore be adjusted rather than assuming one universal lender test.
Property & rental figures
Buy-to-let details
Enter the property, mortgage and rental figures, then adjust the stress assumptions to explore different scenarios.
Use the expected gross monthly rental income before costs.
This is an illustrative testing rate only. Individual lenders use different methods and rates.
The ICR represents the rental income required relative to the stressed mortgage interest.
Rental coverage illustration
Calculated interest coverage ratio
149.6%
Required monthly rent
£1,504
Rent entered
£1,800
Difference against illustrative requirement
+£296per month
Rental coverage is only one part of a buy-to-let case.
An adviser can assess the proposed property and borrowing against lender-specific rental calculations, loan-to-value limits and eligibility criteria.
Speak to an adviserUnderstanding rental coverage
What is an interest coverage ratio?
Many buy-to-let lenders compare the rental income with an assumed level of mortgage interest when considering the affordability of a property.
Step 01
Stress the borrowing
The proposed mortgage is tested against an assumed interest rate rather than relying only on the initial mortgage payment.
Step 02
Apply the ICR
The stressed interest figure is multiplied by the lender's required rental coverage percentage.
Step 03
Compare the rent
Expected rental income can then be compared with the illustrative required rent.
Simple example
How the calculation works.
A £200,000 mortgage stressed at 5% produces £10,000 of annual stressed interest.
If the illustrative ICR requirement is 125%, the annual rent required would be £12,500, equivalent to approximately £1,042 per month.
Mortgage
£200,000
Stress test
5% × 125%
Required rent
£1,042
per month
Lender criteria
The same property can be assessed differently.
Stress rates and rental coverage requirements are not universal across the mortgage market.
Applicant
Tax position and circumstances
Some lenders use different rental calculations depending on the borrower's circumstances and ownership structure.
Product
Mortgage product
The stress test may vary depending on the rate, product type and lender methodology.
Ownership
Personal or company ownership
Individual and limited company applications may be assessed differently depending on the lender.
Property
Property and tenancy
Property type, rental demand, tenancy structure and valuation can also affect lender assessment.
Important information
An illustration, not lender approval.
01
The calculator does not use the underwriting model of any particular lender.
02
Stress interest rates and interest coverage requirements vary between lenders and mortgage products.
03
The expected rent may be subject to lender valuation and may differ from the amount entered.
04
Loan-to-value limits vary according to lender, property type and applicant circumstances.
05
The calculation does not assess credit history, personal income, portfolio exposure, property suitability or wider lender eligibility.
06
Limited company, portfolio landlord and specialist buy-to-let applications may be assessed differently.
07
Rental income figures are shown before tax, management costs, maintenance, insurance, void periods and other property expenses.
08
A result showing that the illustrative rental test is met does not mean that a mortgage application will be accepted.
Continue exploring
Other mortgage calculators.
Important information
This calculator is for general information and illustration only. It does not constitute personal financial advice, a mortgage recommendation, an affordability assessment or an offer of lending. Buy-to-let lender criteria and rental calculations vary and the figures shown should not be treated as an indication that a lender will approve the proposed mortgage.
Some forms of buy-to-let finance may not be regulated by the Financial Conduct Authority. The regulatory status of a transaction depends on the individual circumstances involved.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or other loan secured upon it.
Speak with Intra
Considering a buy-to-let property?
Speak with an adviser about rental coverage, loan-to-value and lender criteria for your proposed investment.