Rental Income Required Calculator
Basic Rate 125%
Higher Rate 145%
HMO 170%

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.

  1. Basic Rate or below: 125%
  2. Higher Rate Band or above: 145%
  3. Limited Company: 125%
  4. Houses in Multiple Occupation (HMO): 170%

Bands for current tax year are as follows.

Band Taxable Income Tax Rate
Personal Allowance Up to £11,850 0%
Basic rate £11,851 to £46,350 20%
Higher rate £46,351 to £150,000 40%
Additional rate over £150,000 45%

Stress Rates

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

  1. 5 year products: 4.99%
  2. 65% or less LTV: 4.99%
  3. 65% to 75% LTV: 5.50%
  4. Over 75% LTV: 5.99%