Cashback Remortgages · Landlord calculations
Buy-to-Let Rental Cover Calculator
Many buy-to-let lenders check whether the rent covers an assumed level of mortgage interest by a set margin — an interest coverage ratio, or ICR. Enter the loan, a stress rate and a cover ratio to estimate the minimum rent the test may require. It is a lending check, not a profit forecast.
Your rental-cover illustration
Typical residential BTL tests use around 125–145% cover at a stress rate of about 5.5–7%. Confirm the actual figures with each lender.
- Minimum monthly rent for the test
- £1,812.50
- Equivalent annual rent
- £21,750.00
Illustrates a lender's interest-coverage test only: required rent = loan × stress rate ÷ 12 × cover ratio. The stress rate is an assessment assumption, not the rate you pay, and lender criteria vary. It is not a profit forecast. This is not mortgage advice, an affordability decision or an offer.
How the calculation works
The estimate is loan × stress rate ÷ 12 × cover ratio. For example, a £150,000 loan tested at 6% with 145% cover needs about £1,088 monthly rent. The stress rate is an assessment assumption and is usually higher than the rate you actually pay.
Different lenders use different stress rates and ratios, and treat limited-company borrowing, higher-rate taxpayers and longer fixes differently. The valuer's assessed rent may also differ from an agent's estimate.
Rental cover is not the whole picture
Passing the test is not approval and is not a profit calculation. Budget separately for management, repairs, insurance, safety compliance, void periods and tax, and get appropriate advice. Interest-only borrowing also needs a plan to repay the capital.
Use the figure to sense-check a property, then confirm the actual assumptions with each lender before relying on it.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
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