Rent to Mortgage Calculator

Buy to Let - Rent to Mortgage 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 Basic rate taxpayer 125% @5.5 or payrate + 2% whichever is higher 125% @4.5% or payrate + 1% whichever is higher for a 5 year fix. Higher rate taxpayer Capital raising - 145% @5.5% or payrate + 2% whichever is higher Like for like - 135% @5.5% or payrate + 2% whichever is higher 5 years fix is interest coverage ratio @4.5% or payrate + 1% whichever is higher Underwriters will also assess the case overall on reasonability and indebtedness.
Aldermore Mortgages England, Scotland and Wales Basic rate taxpayer 125% interest-only calculation Higher rate taxpayer 145% interest-only calculation @ payrate + 2% or 5.5% whichever is higher or Payrate or reversion rate +0.75% whichever is higher for 5 year fixed rates (Use a 120% calculation if surplus earned income is being used) Yes: background affordability will also be taken into account
Bank of Ireland England, Scotland and Wales 145% interest-only calculation @ - 5.50% or 4.5% for a 5-year fixed product 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 Basic rate tax payer -125% interest-only @ 5.5%/125% @ 4% for 5-year fixed Higher rate tax payer - 145% interest-only @ 5.5%/145% @ 4% for 5-year fixed Like for like remortgages with no additional borrowing: 125% @ payrate regardless of taxable income. Apply income multiples to any outstanding residential mortgage and commitments in the background.
BM Solutions England, Scotland, Wales and Northern Ireland Starting at 125% interest-only @ 5.5% for basic rate taxpayers. Starting at 125% interest-only @ 4.5% for 5-year fixed rates (for qualifying clients - earning over £30k pa) For higher and additional rate tax payers, the calculation is based on 135% rental cover plus their additional tax liability will be taken into consideration; please refer to the rental calculator on website. Underwriters will look at income received per month against residential mortgage and unsecured commitments.
Bluestone England, Scotland and Wales Basic rate taxpayers 125% calc; Higher rate taxpayers 140% calc; @ 5.5% or payrate + 2% whichever is higher or @ payrate for 5-year fix Only for the repayment products.
Buckinghamshire England and Wales Limited company and individual buy to lets Basic rate taxpayer 125% @ pay rate + 2% or 5.5% whichever is higher Higher rate taxpayer 135% @ pay rate +2% or 5.5% whichever is higher Yes, 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 Like-for-like remortgages where no additional funds are being requested the calculation is 125% interest-only @ 5.50% or 125% interest-only @ payrate + 1.5% for 5-year products No
Chorley England and Wales 125% @ 5.5% if income of all applicants is basic rate taxpayer (Holiday let: 140% @ 5.5% or payrate @ 2% which ever is higher) 148% @ 5.5% if any applicant is higher rate taxpayer (Holiday let: 160% @ 5.5% or payrate @2% which ever is higher) Nb: if the rental income on the new application takes the client over £40,000 then the 135% calculation is used. No
Coventry for Intermediaries England, Scotland and Wales For purchase 125% @ 5.5% if income of all applicants is less than £49,000 (£42,500 for Scottish applicant) 145% @ 5.5% if any applicant is earning £49,000 or more (£42,500 for Scottish applicant) 5% for a 5-year fixed product at any loan to value The case will also be subject to a background affordability assessment.
Clydesdale Bank England, Scotland and Wales 125% @ payrate on repayment method chosen Yes, will look at an overall affordability assessment. Refer to discuss the case
Darlington England and Wales Basic rate taxpayer - 130% @ 5.5% on repayment method chosen Higher rate taxpayer - 145% @5.5% No.
Family Building Society England and Wales 145% @ 5.79% if purchase or capital raising or 145% @ payrate (if 5-year) 130% @ 5.79% if like-for-like remortgage or 130% @ payrate (if 5-year) No
Fleet Mortgages England and Wales 125% @ 5.5% for individual and limited company buy to lets 125% @ 5.55% for homes of multiple occupancy / multi-unit blocks 125% @ payrate for 5-year fixed product The credit score takes into account the borrower’s total indebtedness amongst numerous other factors
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% interest-only @ payrate in the background. Yes
Foundation Home Loans England and Wales Homes of multiple occupancy and multi-unit freehold blocks: 145% @ 5.5% Limited company: 125% Individuals: 125% for basic rate tax payer or 135% where joint application with one basic rate taxpayer and one higher rate taxpayer 145% for higher rate taxpayer
Gatehouse Bank England and Wales Limited company and basic rate tax payers, 125% @pay rate for 5-year fix and 5.5% for the 2-year fix. Higher rate tax payer/international, ex-pat 145% @pay rate for 5-year fix and 5.5% for the 2-year fix. Yes
Hanley Building Society England and Wales 145% interest-only @ 5.5% or payrate plus 2% if higher Yes
Hampshire Trust Bank England and Wales Buy to let and home of multiple occupancy (up to 6 bed) Personal: 140% Semi-commercial (residential led) All borrower types: 125% Semi Commercial (Com Led) All borrower types: 150% Large home of multiple occupancy (over 6 bed) Limited company: 140% Personal: 155% For 5-year fixed, tested against the pay rate For 2-year fixed, tested against: Buy to let / home of multiple occupancy: pay rate + 2% Semi-commercial: Pay rate + 1% No
Harpenden Building Society England and Wales 135% @ 5.19% Yes
Hinckley and Rugby England and Wales 145% @ 5.5% on repayment method chosen or 145% @ payrate for 5 year fixed rates. Yes
Interbay England and Wales Minimum stress rate is 125% @ 5.5% OR payrate + 1.55%, whichever is higher. Use payrate for a 5-year fixed rate For a remortgage with no additional borrowing: use payrate + 1.05% Standard property Non-portfolio owner: 140% calc Portfolio owner: 155% calc
Ipswich Building Society England and Wales 145% interest-only @ 5.5% or payrate + 2%, whichever is higher 145% interest-only @ payrate for 5-year fixed rates Like for like remortgage with no additional borrowing: rental calculation is 125% @ pay rate No
Kensington England and Wales 125% @ stress rate No
Kent Reliance England and Wales Minimum stress rate is 5.5% or payrate + 1.55%, whichever is higher. Use payrate if 5-year fixed product. For a remortgage with no additional borrowing use payrate + 1.05% Standard property Non-portfolio owner (owns less than 4 buy to lets): 140% calc Portfolio owner (owns 4 or more buy to lets): 155% calc
Keystone England and Wales Individuals: 145% @ 5.5% or at payrate for 5 year products Basic rate tax payers: 125% @ 5.5% but only on products less than 5 years Limited company: 125% @ 5.5% or at payrate for 5 year products for any rate taxpayer Yes
Landbay England and Wales 2-year fixed rate or variable: calculated at 5.50% Individual: 140% Limited company: 125% 5-year fixed rate: Calculated at pay rate Individual: 140% Limited company standard: 125% Limited company home of multiple occupancy / multi-unit freehold blocks: 135% Limited company expat: 135%
Leeds Building Society England, Scotland, Wales and Northern Ireland Basic rate tax payer: 125% Higher rate taxpayer: 145% 150% additional rate taxpayer @ 5.5% @5% for like for like remortgages Underwriters will look at overall indebtedness to ensure that the buy to lets are affordable.
Lendinvest England, Scotland and Wales Individuals and limited companies 125% (home of multiple occupancy / multi-unit freehold blocks 130%) @ 5% or at payrate for 5-year products Higher rate tax payers 140% (home of multiple occupancy / multi-unit freehold blocks 145%) @ 5% Yes
Leek United England and Wales 140% interest-only @ 5.5% Like for like remortgage: 125% interest-only @ 5.5%
Mansfield Building Society England and Wales Basic rate taxpayer: 125% @ 5.5% or payrate + 2% whichever is higher Higher rate taxpayer: 145% @ 5.5% or payrate + 2% whichever is higher Yes: case also assessed on reasonability and indebtedness
Marsden Building Society England and Wales Currently only have an expat buy to let product available 125% @5.5% Yes
Masthaven England, Mainland Scotland and Wales Basic rate taxpayer: 125% @ 5.5 Higher rate taxpayer: 140% @ 5.5 Limited company / limited liability partnership / special purpose vehicle: 125% @ 5.5 Home of multiple occupancy: 140% @ 5.5 Portfolio landlord: 140% @ 5.5 5-year fixed rate @payrate
Melton Building Society England and Wales 145% interest-only @ 5.5% 145% @ 4% for a 5-year fixed rate Like for like remortgage: 130% @ 5.5% Holiday lets: 130% IO @ 5.5% (using average of low, medium and high season rent, and taking 80% as maximum occupancy) No
Metro Bank England and Wales 140% interest-only @ 5.5% or payrate + 2%, whichever is the higher 140% @ 4.5% for a 5-year fixed rate Yes
NatWest England, Scotland and Wales 135% @ 5.5% - Also requires details of personal income, any other financial commitments or expenditure, plus current and expected rental income Minimum 100% rental coverage ratio for customers whose total personal income is £75k+ for first applicant. Basic rate tax relief will be applied for buy to let property finance costs when assessing affordability. Customers will also have to meet 4.99%x income affordability per individual property
Newcastle Building Society England, Scotland and Wales 145% interest-only @ 5.5% 145% interest-only @ 4% for 5-year fixed products (only 5-year fixed products available)
Newbury Building Society Specific Heartlands area only for BTLs Basic rate taxpayer - 125% interest-only @ 5.75% Higher rate taxpayer - 135% interest-only @ 5.75% Customers also need to meet overall affordability
Paragon ( non-portfolio) England, Scotland and Wales Basic rate taxpayer: single self-contained properties 125% @ 5.5% or pay rate + 2% if higher Higher rate taxpayer: single self-contained properties 140% @ 5.5% or pay rate + 2% if higher 5-year fixed rate – @ payrate or 4%, whichever is higher No
Paragon England, Scotland and Wales Basic rate tax payer - single self-contained properties 125% @ 5.5% or payrate + 2% if higher HMO/Multi unit 130% @ or payrate+ 2% if higher Higher Rate tax Payer – single self-contained pptys 140% @ 5.5% or payrate + 2% if higher HMO/Multi unit 145% @ or payrate + 2% if higher Fixed rate – initial term of 5yrs or more: interest cover ratio is @ 4% or payrate, whichever is higher No
Pepper Money England and Wales 140% @ payrate for fixed rate products All other products - 140% @ (see rate guide) 125% @payrate for Ltd Co All on repayment method chosen. No background affordability
Platform Mortgages England, Scotland and Wales Basic rate taxpayers - use a 128% IO calc Higher rate taxpayers - use a 145% IO calc @ 5.5% Nominal rate If £ for £ RM use 128% IO @ 5.5% for all clients but ppty must have been purchased prior to 1/1/17 and 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
Precise Mortgages England, Scotland and Wales Tax bands Basic rate:125% Higher rate: 145% Additional rate: 160% Limited company: 125% Bespoke interest cover ratio: 125% to 160% Tracker products Pay rate + 2% or revert rate if higher (minimum 5.5%) Short term fixed rates Pay rate +2% or revert rate if higher (minimum 5.5%) 5-year + fixed rates - use payrate. Each case is considered for affordability
Principality Building Society England and Wales 145% interest-only @ 5.5% or payrate + 2%, whichever is higher 145% @ 5% for a 5-year fixed product A 125% calculation is used for a £ for £ remortgage, but the property must have been purchased before January 2017 Same calculation for holiday lets where they use an average of low, medium and high season rent No, but a sense check is made
Saffron for Intermediaries England and Wales 140% interest only @ payrate + 2% for variable products (capital raising or new purchase) 125% interest-only @ payrate for 5-year fixed rate or remortgage with no capital raising Each case is looked at on an individual basis
Stafford Railway England and Wales Below 50% loan to value - rental calc is 130% interest-only @ 5.5% Over 50% loan to valye - rental calc is 140% interest-only @ 5.5% Yes
Santander for Intermediaries England, Scotland, Wales and Northern Ireland Basic rate taxpayers (20% or less): use a 125% interest-only calculation Higher rate taxpayers (40%-45%): use a 150% interest-only calculation @ 5.5 % < 5 year fixed rates @ 4% for 5 year fixed rates* Nb: if the rental income on the new application takes the client into the higher rate tax bracket then the higher rate tax calculation is used. If at least one applicant's income tax band is 20% or less, a lower rental cover of 130% will be used. If £ for £ remortgage: @ 4% *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 Basic rate taxpayers: use a 125% interest-only calculation Higher rate taxpayers: use a 145% interest-only calculation @ 5.5% OR @ 5% for fixed rates of 5 years + Also, collective rental income for all buy to lets owned by client must meet this calculation Yes, maximum 10x annual income across the buy to let portfolio
Swansea Building Society England and Wales Buy to let: 145% at 5.75% or 110% @ 7.25% Holiday let: 145% at 5.75%
Teachers for Intermediaries England and Wales Basic rate taxpayers 125% @ pay rate + 2% or 5.5% whichever is higher Higher rate taxpayers 145% @ pay rate +2% or 5.5% whichever is higher Holiday lets 135% @ pay rate +2% or 5.5% whichever is higher No
The Mortgage works England, Scotland and Wales 125% calculation for zero or basic rate taxpayers with maximum 3 properties in portfolio 145% calculation for all others 170% for home of multiple occupancy regardless of tax status Nb: if the rental income on the new application takes the client into the higher rate tax bracket then the higher rate tax calculation is used. 5-year products: up to 75% loan to value @ 4.5%, over 75% @ 4.99% No
The Mortgage Lender England, Scotland and Wales Basic rate taxpayers: 125% calculation Higher rate taxpayers: 140% calculation @ 5.5% or pay rate + 2% or @ pay rate on a 5-year fixed rate Limited company buy to lets: use 125% calculation for any rate tax payer Homes of multiple occupancy / multi lets: use 140% calculation for any rate tax payer No
TSB for Intermediaries England, Scotland and Wales This must cover the product fee if it is to be added to the loan 145% @5.5% for remo with additional borrowing 5-year fix 145% @5% like for like remortgage with no additional borrowing with any product selected Yes
Vernon England and Wales 130% @ 6.2% Yes
Vida Homeloans England and Wales Basic rate tax payers & limited companies: 125% @ pay rate + 2% or 5.5% whichever is higher. Higher rate tax payers: 140% @ pay rate + 2% or 5.5% whichever is higher. 2-year fixed rates: use payrate - minimum of 5% 5-year fix: use payrate Yes - only for first time buyers
Virgin Money England, Scotland, Wales and Northern Ireland 145% interest-only @ stress rate of 5.5% Fixed rate of 5 years or more including additional borrowing - 145% interest-only 4.5% If £ for £ remortgage use 125% interest-only @ 5% Will look at outstanding balances on credit cards and loans in the background for debt to income ratio
Zephyr Homelons England and Wales Individuals: remortgage without capital raising Any rate taxpayer including limited company: 125% @ 5.5 or payrate + 2% whichever is higher Individuals: remortgage with capital raising Basic rate taxpayer: 125% @ 5.5% or payrate + 2% whichever is higher Higher rate taxpayer: 140% @5.5% or payrate + 2% whichever is higher Individuals: any rate taxpayer Home of multiple occupancy / Multi-unit freehold blocks and new build 150% @5.5% or payrate + 2% whichever is higher Limited company: 135% @ 5.5% or payrate + 2% whichever is higher 5 year fix would be at interest cover ratio and payrate No