Calculators
- *NEW* Rental Income Calculator - Calculate the maximum amount of capital your customer(s) can borrow to purchase or remortgage their property.
- *NEW* Portfolio Calculator - Check that your customers existing portfolio and new application fits against our Portfolio Landlord criteria.
- Rate Change Calculator - Find out how your customer's mortgage repayments will be affected by a change in the Bank on England base rate.
HOW WE MAKE OUR CALCULATIONS
- A maximum 75% LTV for loans from £25,001 to £1,000,000.
- A maximum 65% LTV for loans from £1,000,000 to £2,0000,000. EPC rating of the property must be A, B or C.
Visit our criteria page to find out more.
Use the below tables to establish the correct stress rate and rental cover ratio (RCR) to calculate the maximum borrowing available.
| Purchase, Let to Buy, Remortgage with capital raising and Further Advances* |
| Product Type |
Stress Rates (higher of) |
| 2 year fixed |
6% or pay rate + 2% |
| 5 year fixed |
5% or pay rate +0.5% |
* For further advances to qualify for 5 year stress rates the total loan, including all existing balances, must be fixed for 5 years or more at point of application.
| Like for Like Remortgage (BTL/LTB) |
| Product Type |
Stress Rates (higher of) |
| 2 year fixed |
6% or pay rate + 0.5% |
| 5 year fixed |
5% or pay rate + 0.5% |
| Applicants Tax Band |
RCR |
| All applicants are basic rate tax payers** |
125% |
| One or more applicants are higher/additional rate tax payers** |
145% |
** Higher/Additional rate tax payers are customers whose total earned income plus 80% share of the gross rental income for all properties that the applicant will own on completion exceeds £50,271 pa (£43,663 pa in Scotland).
Calculations
Annual rent ÷ Stress rate % ÷ RCR % = Max available loan including any products fees added.
Portfolio Calculations
If the application is for a Portfolio Landlord, the total portfolio (including the subject property) must achieve a minimum rental cover of 145% stressed at 5.5% and be no more than 75% LTV. (Minimum joint income of £30,000 pa).
Please see our Portfolio Landlord Criteria page for further information.
Total portfolio annual rent ÷ total portfolio mortgage balance ÷ 5.5% x 100 = Portfolio RCR.
Total portfolio mortgage balance ÷ total portfolio property value = Portfolio LTV.