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

Income under £45,000 -  125% @7.5% OR payrate + 2% whichever is higher
Income over £45,000 - 145% @7.5% OR payrate + 2% whichever is higher

Like for like - 140% @6.5% OR payrate + 2% whichever is higher

Basic rate taxpayer - 5 yrs fixed rates - 125% @6.5% OR payrate + 1% whichever is higher
Higher rate taxpayer - 5 yrs fixed rates - 145% @6.5% OR payrate + 1% whichever is higher 

Yes
Aldermore Mortgages England, Scotland and Wales

Basic rate taxpayer - 125% IO calculation @ payrate + 2% OR 5.5% whichever is higher

Higher rate taxpayer - 145% IO calculation @ payrate + 2% OR 5.5% whichever is higher

5 yrs fixed rate 
Payrate OR reversion rate +4% whichever is higher for 5 year fixed rates
(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 and Wales

2 year fixed product
145% @8.50%

5 yr fixed product 
145% @7.25%

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%
5-year fixed - 125% @ 4% 

Higher rate tax payer 
145% interest-only @5.5%
 5-year fixed - 145% @ 4%

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.
BM Solutions England, Scotland, Wales and Northern Ireland

Basic rate taxpayer - 125% IO @6.5% or payrate + 2%, whichever is higher

Higher rate taxpayer (1 or more applicant is HRT) - 145% IO @6.5% or payrate + 2% 

5 year fixed rates
Joint income under £55k - @6.5% or payrate + 2%
Joint income above £55k - @6.5% or payrate +2%, whichever is higher

Like-for-like remo (max 60% LTV) - @6.5% or payrate + 2%, whichever is higher

 

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

Basic rate taxpayers - 125% @payrate +2% OR 5.5%, whichever is higher

Higher rate taxpayers - 140% @payrate +2% OR 5.5%, whichever is higher

 For Interest Only - @ payrate 5 years fixed

For capital repayment - 50% of rent and all earned income taken into whole affordability calculation

Only for the repayment products.
Buckinghamshire England and Wales

Basic rate taxpayer - 125% @pay rate +2.5% 

Higher rate taxpayer - 135% @pay rate +2.5% 

Ltd co - same calculation as per the 125%

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 Gross rental income from the security property, must be at least 140% of the required mortgage payment when calculated at the relevant stress rate. No
Castle Trust Bank England & Wales

Basic rate taxpayer
2 year fix - 125% @payrate + 2% 
5 year fix - 125% @payrate

Higher rate taxpayer
2 year fix - 145% @payrate +2%
5 year fix - 145% @payrate 

Ltd company - 125% @payrate

Yes, can be considered if high levels of income
Chorley England and Wales

Basic rate taxpayer 
125% @ 5.5%
Holiday let: 140% @ 5.5% or payrate +2% which ever is higher

Higher rate taxpayer
148% @ 5.5%
Holiday let: 160% @ 5.5% or payrate +2% which ever is higher

No
Coventry for Intermediaries England, Scotland and Wales

Basic rate taxpayer (less than £49k)
Purchase - @higher of payrate + 2% or 7.5%
                                                                                                                      Like for like RM - 125% @higher of payrate + 1% or 6.5%                                                                                                                   

                                                   Higher rate taxpayer (more than £49k)                                                  
Purchase - 145% @higher of payrate + 2% or 7.5%
Like for like RM - 145% @higher of payrate +1% or 6.5% 
                                          
5 yr fixed @higher of payrate or 6.5% 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 Minimum coverage of 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% @6.99% on repayment method chosen

Higher rate taxpayer - 145% @6.99% on repayment method chosen

 

No.
Dudley Building Society England & Wales

Basic rate taxpayer
Purchase - 125% @5.5%
Like for like RM - 130% @5.5%
Capital raising RM - 130% @5.5%

Higher rate taxpayer
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 - 125% @5.5%

5 year fixed rates - 125% @payrate

Ltd co/HMO/MUB - 125% @5.5%

Yes, take into account borrowers overall indebtedness amongst 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% IO @ payrate in the background.

Holidat lets: as above

Yes
Foundation Home Loans England and Wales

Basic rate taxpayer - 125%
Higher rate taxpater - 145%
Joint app with both BRT and HRT - 135%

2 or 3 year fix - 5.5% OR the reversion rate of BBR + 4.99% OR payrate + 2%, whichever is higher
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 basic rate tax payers (including expat paying UK tax)
2 year fix - 125% @7.75%
5 year fix - 125% @pay rate                                                                   

Higher rate tax payer (including expat paying UK tax)
2 year fix - 145% @7.75%
5 year fix - 145% @pay rate

International residents (including non-UK tax paying expats)
2 year fix - 130% @7.75%
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%

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 135% @ 5.5% Yes
Hinckley and Rugby England and Wales

145% @5.5% 

5 year fixed - 145% @payrate

Yes
Hodge England, Scotland and Wales

Portfolios & Holiday Lets only 
145% @5.5%

For holiday Lets - 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

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

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

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

Non standard Property 
Ltd Co - 145% calc 
Personal - 160% calc

5 year fixed products: @payrate

N/A
Keystone England and Wales

Basic rate taxpayer
125% @ 5.5%
5 years fixed - @payrate

Higher rate taxpayer 
145% @ 5.5%
5 years fixed - @payrate

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

 

Yes
Landbay England and Wales

Basic rate taxpayer/Ltd Co/LLP - 125% @5.50%

Higher rate taxpayer - 140% @5.50%

Ltd Co HMO/MUB - 130% @ 5.5%

Ltd Co FTL/FTB/Ex-pat - 135% @ 5.5%

5 Year Fixed Rate - @payrate

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

Basic rate taxpayer - @125%
Higher rate taxpayer - @145%
Additional rate taxpayer - @150%

2 Yr (Purchase & Cap Raising Remo)
60% LTV: 7.85%
70% LTV: 8.45%
75% LTV: 8.75%

2 Yr (Like for like Remo & LTB)
All LTVs: 6.75%

5 Yr
All LTVs: 7.00%

Background stressed at 145% at 7.00% regardless. Aggregate LTV of background should not exceed 75%.

Stressed interest rate where SVR is taken of SVR + 2%

 

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

Basic rate taxpayer and Ltd Co - 125% @5%
HMO/MUFB -  130% @5%

Higher rate taxpayer - 140% @5%
HMO/MUFB - 145% @5%

5 year fixed rates - @payrate

Yes
Leek United England and Wales

140% @5.5%

Like for like remortgage -125% @5.5%

N/A
Mansfield Building Society England and Wales

Basic rate taxpayer - 125% @higher of 6.5% or payrate + 2% 
 
Higher rate taxpayer - 145% @higher of 6.5% 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% @ 4.5%                       

Expat BTLs - basic rate taxpayers
125% @5.5% OR @payrate + 2%, whichever is higher 

Expat BTLs - higher rate taxpayers
145% @5.5% OR @payrate +2%, whichever is higher 
5 Year Fixed Rate - 145% @4.5%

No personal affordability assessment however we do accept top slicing on Expat BTL cases
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 and Wales

Any rate taxpayer - 5 year fixed 140% IO @7.5%

Yes
NatWest England, Scotland and Wales

Basic rate taxpayer
125% @7.83% 
5 year fix - 125% @7.44% 
Like for like RM - 125% @7.44%

Higher rate taxpayer
145% @7.83%
5 year fix - 145% @7.44% 
Like for like RM - 135% @7.44% 

Portfolio landlords/FTB's/Non-owner occupiers
135% @ 7.83%
5 year fix - 135% @7.44%

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

Basic rate taxpayer
Fixed for less than 5 years - 125% IO @6.25% 
Fixed for 5 years or more - 125% IO @ 4.5%


Higher rate taxpayer
Fixed for less than 5 years - 145% IO at 6.25% 
Fixed for 5 years or more - 145% IO at 4.5% 

 

N/A
Newbury Building Society Specific Heartlands area only for BTLs

Basic rate taxpayer -  125% @6%

Higher rate taxpayer - 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

Basic rate taxpayers (single self-contained properties) - 125% 
Higher rate taxpayer (single self-contained properties) - 140% 

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

No
Paragon England, Scotland and Wales

Basic rate taxpayers (single self-contained properties) - 125% @7%
Higher rate taxpayer (single self-contained properties) - 140% @7%

HMO/MUFB - 145% @7%
Discounted SVR rates - 12 months @6.75%/ 2 yrs @6.62%/ 3 yrs @6.95%
5 yrs fixed or more - @5.5%

No
Pepper Money England and Wales

5 year fixed rate products
SSTD BTL - 140% @payrate

All other products
140% @ (see rate guide)
5 year Fixed rate products
Ltd Co: 125% @payrate

All other products
140% @ (see rate guide)

All on repayment method chosen

No background affordability
Platform Mortgages England, Scotland and Wales

Basic rate taxpayer  - 128% IO @5.5%

Higher rate taxpayer - 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
Precise Mortgages England, Scotland and Wales

Basic rate taxpayer and Ltd co
125% @payrate +2% OR @5.5% min, whichever is higher

Higher rate taxpayer
145% @payrate +2% OR @5.5% min, whichever is higher

Additional rate taxpayer
160% @payrate +2% OR @5.5% min, whichever is higher

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

Any rate taxpayer - 145% IO @7.2% 

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
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% IO @% above pay rate
 
Over 50% LTV - 140% IO @2% above pay rate
Yes
Santander for Intermediaries England, Scotland, Wales and Northern Ireland

Basic rate taxpayer
2 or 3 year fixed rates - 125% IO calc  @5.5%
5 year fixed rates* - 125% IO calc @4%
Like for like RM - 125% @4%

Higher rate taxpayer 
2 or 3 year fixed rates - 150% IO calc @5.5%
5 year fixed rates* - 150% IO calc @4%

Like for like RM -  @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 taxpayer and £4£ Portfolio LLd's - 125% @7.6%

Higher rate taxpayer - 145% @7.6%

 5+ yrs fixed rates - @6%

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

Basic rate taxpayer - 125% @payrate +2% OR  @5.5% minimum

Higher rate taxpayer - 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

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

Higher rate taxpayer - 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

Basic rate taxpayer (max 3 properties) or Ltd co - 125% calc 
Higher rate taxpayer - 145% calc
HMOs - 170% calc

1 or 2 year fixed - Higher of payrate +2% OR 5.5%

5 or 10 year fixed  - 
BRT/Ltd Co: @payrate + 0.50%
HRT/HMO: @payrate + 1.50%

Like-for-like remortgages - 
BRT/Ltd Co: @higher of 5.50% or payrate + 0.50%
HRT/HMO: @higher of 5.50% or payrate + 1.50%

Tracker & Variables - 
BRT/Ltd Co: @Higher of payrate + 2% or 5.50%
HRT/HMO: @Higher of payrate + 2.75% or 5.50%

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

Basic rate taxpayer  - 125% @5.5% OR @payrate +2%

Higher rate taxpayer - 140% @5.5% OR @payrate +2% 

5 years fixed - @payrate

Ltd Co - 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

First Time Landlords:
Basic rate taxpayers 140% @5.5% on repayment method chosen.
Higher rate taxpayers 145% @5.5% on repayment method chosen.

Experienced landlords:
Basic rate taxpayers 125% @5.5% on repayment method chosen.
Higher rate taxpayers 130% @5.5% on repayment method chosen.

5 year fixed rate: @payrate

No
Together England, Wales and Scotland

Basic rate taxpayer and Ltd Co - 125%

Higher rate taxpater and Additional rate taxpayer - 145%

If ICR is not met, yes

If ICR met, no

TSB for Intermediaries England, Scotland and Wales

Re-mortgages (with no additional borrowing) 
4.75% OR product rate +1%, whichever is higher, no matter product selected

All other application types 
Less than 5 year fixed - 5.75% OR product rate +2%, whichever is higher
5 years or more fixed - 4.5% OR product rate +1%, whichever is higher

Yes
Vernon England and Wales

Basic rate taxpayer - 130% @ 6.75%
Higher rate taxpayer - 145% @ 6.75%
Ltd co - 130% @ 6.75%

Holiday let - 145% @ 6.75%
Holiday let in a Ltd co - 145% @ 6.75% 

5 year discount - payrate + 3% (capped at 6.75%)
5 year fixed rate - payrate   

 

Yes
Vida Homeloans England and Wales

Basic rate taxpayer and ltd co - 125% @ pay rate + 2% OR 5.5%, whichever is higher
Basic rate taxpayer HMO - 130% @payrate +2% OR @5.5%, whichever is higher

Higher rate taxpayer - 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% @5.5% OR @payrate +2%, whichever is higher

5 year fixed rates - 145% @4.5% OR @payrate +1%, whichever is higher 

Like for like RM - 125% @5% OR @payrate +1%, whichever is higher

 

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

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

Higher & additional rate - 140% @ 7.25%

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

 

No
Zephyr Homelons England and Wales

Individuals - Any rate taxpayer
HMO/ MUFB/ New Build - 150% @5.5% OR @payrate +2%, whichever is higher
Ltd Co - 135% @5.5% OR @payrate +2%, whichever is higher

Individuals - Like-for-Like RM 
Any rate taxpayer/ LTD Co - 125% @5.5% OR @payrate +2%, whichever is higher

Individuals - Capital Raising RM
Basic rate taxpayer - 125% @ 5.5% OR @payrate +2%, whichever is higher
Higher rate taxpayer - 140% @5.5% OR @payrate +2%, whichever is higher

5 year fix: @payrate

 

No