FCA 750263 16 years specialist Rated on Google No upfront fees
For illustration purposes only — a guide, not a quote or mortgage offer.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.
Buy-to-let · ICR

Buy-to-Let Rental Cover

Buy-to-let lenders don't lend on your salary — they lend on whether the rent covers the mortgage with a safety margin on top. That's the rental-cover (ICR) test. Enter your figures and see the maximum loan the rent supports.

The rental
£
£
£

The mortgage you'd like to take. We test it against the rent to tell you whether it passes the rental-cover (ICR) check, and how much room you have either way. Leave it as a guide — the result updates as you type.

Who's buying?

ICR (Interest Coverage Ratio) is how much higher the rent has to be than the mortgage interest. A 125% ICR means the rent must be at least 1.25× the (stressed) mortgage interest; a higher-rate individual taxpayer is usually stress-tested at 145% because of Section 24 mortgage-interest relief restrictions. Limited companies (SPVs) typically use 125%, which is why so many landlords now buy through one.

Lender's stress rate
7.00%

The notional interest rate the lender tests you at — usually higher than the rate you'll actually pay, to check you can cope if rates rise. Typical 2026 BTL stress rates run from about 5.5% to 8%. Five-year fixes can be stressed at a lower rate (sometimes the pay rate itself); two-year fixes use the higher figure.

£0 maximum loan the rent supports on this profile.
Basic-rate individual
125% ICR

An individual landlord taxed at the basic rate. Lenders typically apply a 125% rental-cover ratio — the gentlest of the three, so it usually supports the largest loan.

max loan £0
Rent needed for your loan£0 / mo
Higher-rate individual
145% ICR

An individual landlord taxed at the higher rate. Because of Section 24 mortgage-interest relief restrictions, lenders stress these at a tougher 145% — so the same rent supports a smaller loan.

max loan £0
Rent needed for your loan£0 / mo
Limited company (SPV)
125% ICR

Buying through a limited company (SPV). Mortgage interest is a business cost, so lenders generally use a 125% ratio regardless of your personal tax band — the reason this structure became so popular after 2017.

max loan £0
Rent needed for your loan£0 / mo
Watch · 3 min

Buy-to-let rental cover (ICR) explained

Payam Azadi explains how lenders stress-test the rent against the mortgage, why higher-rate taxpayers face a tougher 145% test, and when buying through a limited company changes the numbers.

Payam Azadi · NicheAdvice · FCA 750263 · 15k+ YouTube subscribers
Explainer video — coming soon
Free · no obligation

Portfolio, HMO, holiday let or limited-company SPV?

Stress tests and ICR thresholds change a lot by lender. We place buy-to-let cases every week and know which lenders flex — let's find the one that lends most against your rent.

For illustrative purposes only

This calculator is a guide. The figures shown are illustrative and based on the inputs you provide — they are not a quote, a mortgage offer, financial advice, or tax advice. Buy-to-let stress rates and Interest Coverage Ratios (ICR) vary widely by lender and product (two-year vs five-year fix, personal vs limited company, portfolio vs first-time landlord). HMOs, multi-unit blocks and holiday lets typically use higher ICRs (150%+). Real affordability also depends on your credit history, deposit, landlord experience and the property — and the rent must be supported by an independent valuer's "market rent" assessment, not the figure you hope to achieve.

Always consult a qualified tax adviser or accountantHow buy-to-let rental income is taxed — and whether you buy personally or through a limited company (mortgage-interest relief / Section 24) — has major tax consequences. Get advice from a qualified accountant or tax adviser before structuring a buy-to-let.
Always speak to an FCA-regulated mortgage brokerStress rates and ICR thresholds vary by lender, product (for example five-year fixes), tax band, and whether you buy personally or via a company. A regulated broker will confirm the real figures for your case.

Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. Niche Advice Limited accepts no responsibility for any decisions made on the basis of this calculator. Niche Advice Limited is authorised and regulated by the Financial Conduct Authority (FCA Reference: 750263). Your home may be repossessed if you do not keep up repayments on your mortgage.

Stress rates, ICR thresholds and lender criteria change frequently, and your individual circumstances may produce different results.