Rental Income Calculator
Calculate the rental income needed for your Buy-to-Let mortgage or find out how much you could borrow based on expected rent.
How BTL Stress Tests Work: Lenders don't use your actual mortgage rate. They apply a higher "stress rate" (typically 5-6%) and require your rental income to cover 125%-145% of the stressed interest payments.
Example: For a £150,000 loan at 5.5% stress rate with 125% coverage, you'd need: £150,000 × 5.5% ÷ 12 × 1.25 = £859/month minimum rent.
BTL Rental Income Calculator
Choose your calculation mode and enter your details below
Important Notice: This information is a guide only and should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. All mortgages are subject to the applicant(s) meeting the eligibility criteria of lenders.
Calculator results are approximate and cannot be relied upon. Actual eligibility depends on lender criteria, your personal income, credit history, and the specific property's location/condition.
Make an appointment to receive mortgage advice suitable for your needs and circumstances.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER LOAN SECURED ON IT. THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME TYPES OF BUY TO LET OR COMMERCIAL MORTGAGES.
How the Stress Test Works
The Lender's Perspective
- 1Calculate Loan Amount: Based on your deposit, the lender determines the maximum loan size (e.g., 75% LTV).
- 2Apply Stress Test: Lenders use a higher "stress rate" (e.g., 5.5%) rather than your actual product rate.
- 3Coverage Requirement: They multiply the stressed interest by a coverage ratio (125%-145%).
- 4Compare: If your rent exceeds this minimum, you pass; otherwise you may need a larger deposit.
Key Components
- Interest-Only: Most BTL mortgages are interest-only, meaning you only pay interest monthly.
- Stress Rate: A higher notional rate (typically 5-6%) used to simulate future rate rises.
- ICR (Interest Cover Ratio): The percentage (125%-145%) your rent must cover of stressed payments.
Ready to discuss your BTL investment?
Get expert advice tailored to your portfolio