TL;DR
Estimate two common Buy to Let limits
The calculator estimates a rent-supported loan using an ICR and stress rate, then compares it with the selected maximum LTV. It shows the lower figure.
Lenders use different ICRs, stress rates, product rules and property criteria. The result is not a guaranteed loan or Decision in Principle.
Calculator / tool
Maximum Buy to Let loan calculator
How lenders assess Buy to Let borrowing
Many BTL lenders test whether expected rent covers stressed mortgage interest by a required percentage. They also cap the loan at a maximum LTV and assess the applicant, property, tenancy and valuation.
- ICR is the required rental-interest coverage.
- Stress rate is a notional rate used in the test.
- Maximum LTV limits the loan against property value.
- The lowest applicable limit normally controls the estimate.
Personal name, limited company and taxpayer status
Some lenders use different ICR or stress assumptions by tax band, ownership structure and product type. Limited-company lending is not automatically more suitable and needs separate mortgage, accounting and tax review.
What the maximum loan estimate does not include
The tool does not model lender affordability top-slicing, minimum income, portfolio-landlord rules, property restrictions, valuation rent, licensing, lease terms, credit profile, fees or underwriting.
Example maximum BTL loan
With £1,200 monthly rent, 125% ICR and a 7.5% stress rate, the rental test produces one limit. A 75% LTV on a £250,000 property produces another; the lower figure is shown.
- Monthly rent
- £1,200
- ICR
- 125%
- Illustrative stress rate
- 7.5%
- Maximum LTV
- 75%
Frequently asked questions
What is ICR in Buy to Let lending?
Interest Coverage Ratio compares expected rent with stressed mortgage interest. A 125% requirement means rent must be at least 125% of the tested interest amount.
What is a Buy to Let stress rate?
It is a notional interest rate used to test rental coverage, not necessarily the pay rate. It varies by lender, product, deal period and applicant or ownership structure.
Why can another lender offer a different maximum loan?
Lenders use different ICRs, stress rates, LTV caps and property rules. Some may consider personal income through top slicing, while others will not.
Does taxpayer status affect the result?
It can. Some criteria distinguish basic-rate and higher-rate taxpayers or personal and limited-company applications. The calculator lets you select an ICR but does not determine the correct one for you.
Is this a guaranteed Buy to Let mortgage amount?
No. It is an estimate based on selected assumptions. Valuation, expected rent, credit profile, experience, income and full underwriting still apply.
Can a limited company borrow more?
Sometimes criteria differ, but a higher estimate does not make the structure suitable. Compare mortgage pricing, fees, tax, accounting and long-term plans with qualified advisers.