Rent to Mortgage Calculator

Buy to Let - Rent to Mortgage Calculator

R2M Calculator
The information listed is for guidance only. Prior to submission of any mortgage application, PMS members should check with the lender that the application fits their criteria.
Lender Lending Areas Rent to Mortgage Calculations Is overall affordability also taken into account?
Accord Mortgages England and Wales

Income under £45,000 -  125% @6.5% OR payrate + 2% whichever is higher
Income over £45,000 - Capital raising or purchasing - 145% @6.5% OR payrate + 2% whichever is higher

Like for like - 140% @6% OR payrate + 2% whichever is higher

BRT - 5 yrs fixed rates - 125% @5.5% OR payrate + 1% whichever is higher
HRT - 5 yrs fixed rates - 145% @5.5% OR payrate + 1% whichever is higher 

Yes
Aldermore Mortgages England, Scotland and Wales

BRT - 135% IO calculation
HRT - 145% IO calculation
HMO - 160% (total ICR) or 135% (using top-slicing)
@ payrate + 2% or 5.5% whichever is higher

5 yrs fixed rate - Payrate OR reversion rate +4% whichever is higher
(Use a 120% calculation if surplus earned income is being used)

 

Yes - Affordability will now be based on higher of (i) pay rate or (ii) 4.0%
(previously, higher of (i) pay rate or (ii) reversion rate plus 0.75%)
Bank of Ireland England, Scotland, Wales and Northern Ireland

2 year fixed product
145% @higher of 5.5% or payrate +2%

5 yr fixed product 
145% @higher of 5.5% or payrate +1%

Yes - underwriters will review case to ensure of ability to pay, including level of overall debt-to-income.
Barclays England, Scotland, Wales and Northern Ireland The separate rental coverage has been removed as the below affordability test includes rental coverage @ 5.5%   Yes - the BTL affordability calculator has to be completed for each application to asses personal affordability across all mortgages.
Bath Building Society England and Wales

BRT 
125% interest-only @ higher of 5.5% or payrate +2%
5-year fixed - 125% @payrate 

HRT 
145% interest-only @ higher of 5.5% or payrate +2%
 5-year fixed - 145% @payrate

Like for like RM - 125% @payrate regardless of taxable income

Ltd co - 125%

Apply income multiples to any outstanding residential mortgage and commitments in the background.
Beverley England and Wales 130% @ higher of payrate +2% or 5.5% N/A
BM Solutions England, Scotland, Wales and Northern Ireland

BRT - 125% IO @6% OR payrate +2%, whichever is higher

HRT (1 or more applicant is HRT) - 145% IO @6% OR payrate +2% 

5 year fixed rates
@higher of 5% or payrate +0.5%

Like-for-like remo
2 year fix is stressed @6% or payrate +0.5%, whichever is higher
5 year fix is stressed @5% or payrate +0.5%, whichever is higher

 

Underwriters will look at income received per month against residential mortgage and unsecured commitments.
Buckinghamshire England and Wales

BRT - 125% @pay rate +2.5% 

HRT - 135% @pay rate +2.5% 

Yes, ONLY for consumer buy to lets, i.e. clients who are homeowners but FTLs and becoming owner of property that they or their family members have lived in.
Cambridge Building Society England and Wales

2 year products - 140% @ payrate +2%

5 year products - 140% @ payrate

No
CHL Mortgages England and Wales

BRT/Ltd Co/LLP - 125% @higher of 5.5% or payrate +2%

HRT - 140% @higher of 5.5% or payrate +2%

Blended ICR available where 1 applicant is HRT and 1 is BRT

5 year fix @payrate

Like-for-like remo on less than 5 year fix - stressed at higher of 5% OR payrate 

N/A
Chorley England and Wales

BRT - 125% @ 5.5%
Holiday let: 140% @ 5.5% or payrate +2% which ever is higher

HRT - 148% @ 5.5%
Holiday let: 160% @ 5.5% or payrate +2% which ever is higher

No
Cooperative for Intermediaries England, Scotland and Wales

BRT  - 128% IO @5.5%

HRT - 145% IO @5.5% 

Like for like RM - 128% IO @5.5% (ppty must have been purchased prior to 1/1/17 and had NO further borrowing after then)

An overall sense check is made, such as debt to income ratio for unsecured debt and for the whole portfolio of properties
Coventry for Intermediaries England, Scotland and Wales

BRT (less than £49k)
Purchase - @higher of payrate + 2% OR 7%
Like for like RM - 125% @higher of payrate + 1% OR 5.5%                                                                                                                   

HRT (more than £49k)                                                  
Purchase - 145% @higher of payrate + 2% OR 7%
Like for like RM - 145% @higher of payrate +1% OR 5.5% 
                                          
5 yr fixed @higher of payrate OR 5.5% for any LTV

For portfolio landlords, whole portfolio will be stressed at 6.5%

The case will also be subject to a background affordability assessment.
Clydesdale Bank England, Scotland and Wales No minimum rental coverage required, based purely on affordability Yes, will look at an overall affordability assessment. Refer to discuss the case
Darlington England and Wales

BRT - 130% @6.99% on repayment method chosen

HRT - 145% @6.99% on repayment method chosen

 

No
Dudley Building Society England & Wales

BRT
Purchase - 125% @5.5%
Like for like RM - 130% @5.5%
Capital raising RM - 130% @5.5%

HRT
Purchase - 140% @5.5%
Like for like RM - 130% @5.5% 
Capital raising RM - 140% x 5.5%

N/A
Family Building Society England and Wales 145% @ 5.8% No
Fleet Mortgages England and Wales

2 year fixed rates:
BRT, Ltd Co, HMO, MUB - 125% @ higher of 5.5% or payrate +2%
HRT - 145% @ higher of 5.5% or payrate +2%

5 year fixed rates:
BRT, Ltd Co, HMO, MUB - 125% @payrate
HRT - 145@ payrate

Yes, take into account borrowers overall indebtedness amongst other factors
Foundation Home Loans England, Scotland and Wales

BRT - 125%
HRT - 145%
Joint app with both BRT and HRT - 135%

2 or 3 year fix - Loan amount must be covered by the higher of 8% or payrate + 2%
5 year fix - @ payrate

No
Furness Building Society England, Scotland and Wales

Overall affordability is used to assess each case using the online calculator. 
Rent must also be at least 125% IO @ payrate in the background.

Holidat lets: as above

Yes
Gatehouse Bank England and Wales

Ltd co and BRT (including expat paying UK tax)
2 year fix - 125% @ 8.5%
5 year fix - 125% @payrate                                                                   

HRT (including expat paying UK tax)
2 year fix - 145% @ 8.5%
5 year fix - 145% @payrate

International residents (including non-UK tax paying expats)
2 year fix - 130% @8.5%
5 year fix - 130% @payrate
 

Yes
Hanley Building Society England and Wales 145% @5.5% OR payrate + 2%, whichever is higher  Yes
Hampshire Trust Bank England and Wales

BTL&HMO (up to 6 bed) - 140%
Large HMO (>6 bed) - 155% 
Ltd Co - 140%

Semi Commercial (Resi) - 125%
Semi Commercial (Com) - 150% (refer)

2 year fixed - @payrate + 2% (BTL/HMO)
2 year fixed semi Com @payrate + 1%

5 year fixed - @payrate

No
Harpenden Building Society England and Wales 140% @ 5.5% Yes
Hinckley and Rugby England and Wales

145% @5.5% 

5 year fixed - 145% @payrate

Top Slicing - Applications failing the stressed rate check can still be considered using net disposable income in the affordability calculator if rent covers at 145% @ payrate
[Top slicing unavailable for Portfolio Landlords.]

Yes
Hodge England, Scotland and Wales

145% @5.5%

ICR calculation based on average of 30 weeks using average of low, medium and high figure

N/A
Interbay England and Wales

Personal name - 140% @5% OR @payrate +1.55% whichever is higher
Ltd Co - 125% @5% OR @payrate +1.55% whichever is higher

Complex BTL (HMO or student let of more than 6 rooms, MUB of more than 6 flats or multiple properties on one loan): 
Personal name -  160%
Ltd co - 145% 

All products:
5 yr fixed rate:  @payrate
Like-for-Like RM: @payrate +1.05%

 

N/A
Kensington England, Wales, Scotland and Northern Ireland Bespoke calculator online for every case No
Kent Reliance England and Wales

Standard property
Ltd Co - 125% calc
Personal - 140% calc

Non standard Property 
Ltd Co - 145% calc 
Personal - 175% calc

Minimum stress rate is 5.5% OR payrate + 1.55%, whichever is higher.

For a remortgage with no additional borrowing - payrate +1.05%

5 year fixed products: @payrate

N/A
Keystone England and Wales

BRT - 125% @ 5.5%
5 years fixed - @payrate

HRT - 145% @ 5.5%
5 years fixed - @payrate

Ltd Co - 125% @5.5%
5 years fixed Ltd Co - @payrate

 

Yes
Landbay England and Wales

BRT - 125% @higher of payrate + 2% or 5.50%

HRT - 140% @higher of payrate +2% or 5.50%

Ltd Co/LLP - 125% @ higher of payrate +2% or 5.50% 

Ltd Co HMO/MUB - 130% @higher of payrate +2% or 5.5%

Ltd Co FTL/FTB/Ex-pat - 135% @higher of payrate +2% or 5.5%

5 Year Fixed Rate - @payrate

Like-for-like remortgage: @payrate +1%

N/A
Leeds Building Society England, Scotland, Wales and Northern Ireland

BRT - @125%
HRT - @145%
ART - @150%
HMOs: @170%
Holiday Lets: @150%

<5 Year Purchase & Cap Raising Remo - @payrate +2%

Like for like Remo - @payrate

5 year fix - @payrate +1%

Ltd Co: 125% @payrate + 2%. Like-for-like remo is payrate. 5 year fix is payrate +1%.
 

Underwriters will look at overall indebtedness to ensure that the buy to lets are affordable.
Lendinvest England, Scotland and Wales

For latest ICR stress calculations please see guide as they vary depending on product selected

BRT and LTD co
125%

HRT and ART
140%

Yes
Leek United England and Wales

140% @5.5%

Like for like remortgage -125% @5.5%

N/A
Mansfield Building Society England and Wales BRT - 125% @higher of 6% or payrate +2% 
 
HRT - 145% @higher of 6% or payrate +2%
Yes: case also assessed on reasonability and indebtedness
Marsden Building Society England and Wales

Holiday Lets (UK & Expat) 
145% @5.5% OR @payrate +2%, whichever is higher 
5 Year Fixed Rate - 145% @ payrate OR 115% @payrate for top-slicing                  
Like-for-like remo (max 60% LTV) - 125% @ payrate

Expat BTLs 
UK BRT - 125% @5.5% OR @payrate + 2%, whichever is higher
UK HRT - 145% @5.5% OR @payrate +2%, whichever is higher 
5 Year Fixed Rate BRT - 125% @ payrate
5 Year Fixed Rate HRT - 145% @ payrate

Top-slicing - 115% @ payrate
Like-for-like remo (max 60% LTV) - 125% @ payrate

No personal affordability assessment however we do accept top slicing on Expat BTL cases
Market Harborough England and Wales No rental calculations. Applications are assessed on full affordability. Yes
Melton Building Society England and Wales

145% @5.5%

5yr fixed rate - 145% @4%

Like for like RM - 130% @5.5%

Holiday Lets - 130% IO @5.5% 
(using  average of low, med & high season rent and taking 80% as max occupancy)

 

No
Metro Bank England, Wales and (mainland) Scotland

2 and 5 year fixed rates, £4£ remortgages and portfolio landlords - @140%
Non-portfolio landlords and top slicing - @100%

2 year fix: @payrate + 2%
5 year fix or £4£ remo: @payrate + 0.5%

 

Yes
NatWest England, Scotland and Wales

Purchase and Remortgage Additional Borrowing:
BRT: 125% @7.18% (6.68% for 5 year product)
HRT: 145% @ 7.18% (6.68% for 5 year product)

Remortgage Like-for-Like:
BRT: 125% @ 7.15%
HRT: 135% @ 7.15%

Portfolio landlords/FTB's/Non-owner occupiers - 
135% @ 7.81% (OR 6.68% for 5 year products)

Basic Rate Tax relief will be applied for BTL property finance costs when assessing affordability
Newcastle Building Society England, Scotland and Wales

BRT: @125% 
Fixed for > 5 years: @8.50%
Fixed for < 5 years: @6.25%
                                                                          
HRT: @145%
Fixed for > 5 years: @8.50%
Fixed for < 5 years: @6.25%

 

No
Newbury Building Society England and Wales

BRT -  125% @6%

HRT - 135% @6%

Customers also need to meet overall affordability
Octopus Real Estate England and Wales

Individual - 125%

Ltd Co - 120%

HMO/Mixed use - 145%

N/A
Paragon ( non-portfolio) England, Scotland and Wales

BRT (single self-contained properties) - 125% 
HRT (single self-contained properties) - 140% 

5 year fixed rate - @5.5%
Discounted SVR - 2 year @7.62%

No
Paragon England, Scotland and Wales

BRT (single self-contained properties) - 125% @7%
HRT (single self-contained properties) - 140% @7%

HMO/MUFB: 145% @7% 
Discounted SVR rates: 12 month @ 6.75%, 2 year @ 6.62% and 3 year @ 6.95%
5 yrs fixed or more: @5.5%

No
Precise Mortgages England, Scotland and Wales

BRT and Ltd co - 125% @payrate +2% OR @5.5% min, whichever is higher

HRT - 145% @payrate +2% OR @5.5% min, whichever is higher

ART - 160% @payrate +2% OR @5.5% min, whichever is higher

5yr+ fixed rates - @payrate.

Yes, additional underwriting checks may be required
Principality Building Society England and Wales

Any rate taxpayer - 145% IO @7.15% 

Like-for-Like RM - 125% calc (the property must have been purchased prior to Jan 2017)

Holiday Lets - same calculation - use an average of low, mid & high season rent

 

No, but a sense check is made
Quantum Mortgages England, Wales and Northern Ireland

BRT & SPV: 125% @ higher of 5.5% or payrate +2%

HRT: 145% @ higher of 5.5% or payrate + 2%

5 & 7 year fixed rates: Stressed @ payrate

£ for £ remortgages with full 24 month payment history: ICR of 100% *Minimum of 2 years clear mortgage

Yes
Saffron for Intermediaries England and Wales

Variable products/ Capital raising/ Purchase - 140% IO @payrate +2%

5 yr fixed rate - 140% @payrate

Like for like RM - 125% IO @payrate

Yes
Stafford Railway England and Wales Below 50% LTV - 130% @ pay rate +2%
 
Over 50% LTV - 140% @pay rate +2%
Yes
Santander for Intermediaries England, Scotland, Wales and Northern Ireland

BRT - 125%
2 or 3 year fixed rates - @8.52%
5 year fixed rates* - @7.02%
Like for like RM - @7.02%

HRT - 145%
2 or 3 year fixed rates - @8.52%
5 year fixed rates* - @7.02%
Like for like RM -  @7.02%

*Porting applications - @5.50% applies.

Rent also needs to cover mortgage and monthly running costs – including things like voids, ground rent and service charge.

Yes
Skipton Intermediaries England, Scotland and Wales

BRT & £4£ Portfolio LLd's
125% @7.60%

HRT
145% @7.60%

 5+ yrs fixed rates: @6.29%
For Standard BTLs only (not portfolio BTL applications) - no stress test for background portfolio, just needs to be self-financing

Yes, maximum 10x annual income across the buy to let portfolio
Suffolk Building Society England and Wales

145% @5.5% OR @payrate + 2%, whichever is higher

5 year fixed rates - 145% @payrate

Like for like RM - 125% @payrate

 

No
Swansea Building Society England and Wales

BRT - 125% @payrate +2% OR  @5.5% minimum

HRT - 145% @payrate +2% OR @5.5% minimum

Holiday let - 145% @5.75%

Yes, will take into account personal income
Teachers for Intermediaries England and Wales

BRT - 125% @ pay rate + 2% OR 5.5%, whichever is higher 

HRT - 145% @ pay rate +2% OR 5.5%,  whichever is higher 

Holiday lets - 135% @payrate +2% OR @5.5%, whichever is higher

No
The Mortgage Works England, Scotland and Wales

BRT or Ltd co - 130% calc 
HRT - 165% calc
HMOs - 175% calc

Tracker, variable, 1 or 2 year fixed -
@Payrate + 2% or 5.5%, whichever is higher

Like-for-like remo or 5 or 10 year fixed -
@Payrate or 4.5%, whichever is higher

Nb. if the rental income on the new application takes the client into the higher rate tax bracket, then the HRT calculation is used

No
The Mortgage Lender England, Scotland and Wales

BRT  - 125% @5.5% OR @payrate +2%

HRT - 140% @5.5% OR @payrate +2% 

5 years fixed - @payrate

Ltd Co and flats above commercial - 125% for any rate tax payer
HMOs/ MUFB - 140% for any rate tax payer

No
The Nottingham  England and Wales

Like for like - 145% @6.25%
5 year fixed - 145% @6.25%
All other lending - 145% @8.25%

Ltd Co - 125% at 6.5% for all other lending

No
Tipton and Coseley Building Society England and Wales

Where product rate is 3.5% or below:
BRT, Ltd Company or Ex-pat - 125% @ 5.5%
HRT - 130% @ 5.5%

Where product rate is above 3.5%:
BRT, Ltd Compant or Ex-pat - 125% @ product rate + 2%
HRT - 130% @ product rate +2%

For 5+ year fixed rates, all will be stressed at payrate

No
Together England, Wales and Scotland

BRT and Ltd Co - 125%

HRT and ART - 145%

If ICR is not met, yes

If ICR met, no

TSB for Intermediaries England, Scotland and Wales

BRT (both applicants must be BRT) - 125% 
HRT, all self-employed and day rate contractors - 145%

Re-mortgages (With no additional borrowing) - Higher of 6.5% OR product rate +1% no matter product selected.    

Purchases and capital raising remo:
Higher of 7.5% OR product rate +2% 
For 5+ year fixed rates - Higher of 6.5% or product rate +1

Yes
United Trust Bank England and Wales

BRT - 125% @ 5%

HRT - 140% @ 5%

Combined -  130% @ 5%

N/A
Vernon England and Wales

BRT/Ltd co - 130% @ 8.4%
HRT/Holiday Let - 145% @ 8.4%


5 year fixed rate (Ltd co only) - @payrate   

 

Yes
Vida Homeloans England and Wales

BRT and Ltd co - 125% @ pay rate + 2% OR 5.5%, whichever is higher
BRT HMO - 130% @payrate +2% OR @5.5%, whichever is higher

HRT (inc HMO) - 140% @ pay rate + 2% OR 5.5%, whichever is higher

2-year fixed rates - @ payrate OR @minimum of 5%
5-year fix - @ payrate

Yes - only for first time buyers
Virgin Money England, Scotland, Wales and Northern Ireland

BRT (or like-for-like remo for HRT): 125%
HRT: 145% 

Like-for-like Remo @at the higher of 5% or payrate + 1% 
Purchase or Remortgage with additional borrowing @higher of 5.5% or payrate + 2% 
5+ Year Fixed rate @the higher of 4.5% or payrate + 1% 

Will look at outstanding balances on credit cards and loans in the background for debt to income ratio
West One England and Wales

BRT/ Ltd Co/ LLP's 
Variable and sub 5 year fixed - 125% @7.25%
HMO and MUFB - 135% @7.25%

HRT - 140% @ 7.25%

For five year fixed or longer rate products - calculation is at payrate.

 

No
Zephyr Homelons England and Wales

BRT and like-for-like remo -
Standard Property - 125%
HMO, MUFB - 150%

HRT - 
Standard property - 140%
HMO, MUFB - 150%

Ltd Co.
Standard Property - 125% 
HMO, MUFB - 135%

Stressed rate is @higher of payrate +2% or 5.5% 
5 year fix: @payrate

No