Landlords & Property2 min check

Buy-to-Let Stress Test (ICR)

Most BTL lenders stress-test rent at 5.5% interest with an ICR of 125% (basic-rate) or 145% (higher-rate). This tool checks if your rent passes.

Short answer

BTL lenders apply an Interest Coverage Ratio (ICR) test: monthly rent must cover the stressed mortgage interest by 125% (basic-rate) or 145% (higher-rate / Ltd Co). Stress rate is typically 5.5%–7% even if your actual product rate is lower.

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Calculation method, coverage and version

Inputs used: Mortgage amount, Stress rate, Expected monthly rent, ICR required by lender.
Calculation approach: The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage: Landlords & Property. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version: No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.

Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

Primary sources and official verification

Use these official sources to verify current rules before acting. Coverage and dates can differ across England, Scotland, Wales and Northern Ireland.

See the sitewide source policy.

How it works

Required rent = (loan × stress rate ÷ 12) × ICR. If your real rent is below that, the lender won't lend the full amount you want. 5-year fixes are usually stress-tested at the pay rate, not the higher stress rate.

Worked example

£150k loan, 5.5% stress, 145% ICR (HR taxpayer) → required rent = (150,000 × 5.5% ÷ 12) × 1.45 = £997/month. Achievable at £1,100/m → passes.

Who should use this

•BTL buyers checking borrowing limits before offers
•Landlords remortgaging in higher-rate environment
•Investors weighing 2-yr vs 5-yr fixes (5-yr unlocks more borrowing)

Common mistakes

×Using the actual product rate instead of the stress rate
×Forgetting 145% ICR for HR taxpayers and Ltd Cos
×Assuming 2-year fix has same borrowing as 5-year (it doesn't)

Frequently asked questions

Why do 5-year fixes let me borrow more?▾

PRA rules allow lenders to skip the +2% stress test on 5-year+ fixes, so borrowing capacity goes up.

What if my deal fails ICR?▾

Increase deposit, choose a 5-year fix, increase achievable rent (HMO/serviced) or buy via Ltd Co at lower personal HR.

Is ICR the same as DSCR?▾

Similar concept — DSCR (US) usually includes principal too. UK BTL ICR is interest-only.

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BTL Costs →Rental Yield →Mortgage Repayment →