Check the maximum loan a lender will offer based on your expected rental income, using the interest cover ratio (ICR) tests lenders apply to landlords.
Enter the property value and the rent you expect to charge. Then pick the rental cover ratio that matches your situation — most individual landlords paying higher-rate tax should use 145%. Not sure? Ask your accountant or broker.
£
£
%
%
Lender rental cover ratio
125%
Standard
145%
Higher-rate tax
165%
Limited company
Maximum loan based on rental income
£113,793
Within your deposit-based borrowing limit
Deposit needed
£55,000
Loan needed (75% LTV)
£165,000
Annual rent£13,200
£1,100 × 12 = £13,200
Your monthly rent multiplied by twelve gives the total rent you'd collect over a year.
Required annual mortgage cost£9,103
£13,200 ÷ 1.45 = £9,103
Lenders want your rent to be at least 145% of the mortgage cost, so we divide the annual rent by that ratio to find the maximum mortgage payment they'll allow.
Maximum loan at this rate£113,793
£9,103 ÷ 5.63% = £113,793
Dividing that allowed annual cost by your mortgage rate tells you the biggest loan the rent can support.
Estimates only. Actual lending limits depend on individual lender criteria, your income, credit history, and property type. Always speak to a mortgage adviser or broker before proceeding.
Want to understand the maths?
Read our full guide to buy-to-let affordability — how lenders assess rental income, what the ICR scenarios mean, and answers to the most common questions.