Rental Income Required Calculator
Please read the following notes below as the stress rates are dependant on the Loan To Value (LTV) which can be different between mortgage companies.
Income Cover Ratio
This is dependant on what income tax bracket you in as well as whether you take the mortgage out in a Limited Company. The rules are as follows.
- Basic Rate or below: 125%
- Higher Rate Band or above: 145%
- Limited Company: 125%
- Houses in Multiple Occupation (HMO): 170%
Bands for current tax year are as follows.
||Up to £11,850
||£11,851 to £46,350
||£46,351 to £150,000
This varies between mortgage companies however the basic rules are dependant on the Loan To Value (LTV) percentage as well as the fixed term of the mortgage. The general rules are
- 5 year products: 4.99%
- 65% or less LTV: 4.99%
- 65% to 75% LTV: 5.50%
- Over 75% LTV: 5.99%