Will Your BTL Deal Pass the Lender's Stress Test?
Will Your BTL Deal Pass the Lender's Stress Test?
Will Your BTL Deal Pass the Lender's Stress Test?
Will Your BTL Deal Pass the Lender's Stress Test?
Find out in 30 seconds if your rental income meets lender requirements. Most investors get this wrong and waste weeks on deals that were never going to get approved.
Calculate exactly how much stamp duty you'll pay on your property purchase in England, Wales, or Scotland. Get instant results with our comprehensive calculator.
Calculate exactly how much stamp duty you'll pay on your property purchase in England, Wales, or Scotland. Get instant results with our comprehensive calculator.
Getting Your Results in 4 Steps:
Enter Your Property Details
Input the property value and expected monthly rent. Be realistic with rent estimates - use the lower end of market rates, not optimistic projections.
Input the property value and expected monthly rent. Be realistic with rent estimates - use the lower end of market rates, not optimistic projections.
Set Your Lending Parameters
Choose your LTV (typically 60-75%), the stress test interest rate (5.5-8% depending on product), and ICR requirement (125% for basic rate/limited company, 145% for higher rate taxpayers).
Choose your LTV (typically 60-75%), the stress test interest rate (5.5-8% depending on product), and ICR requirement (125% for basic rate/limited company, 145% for higher rate taxpayers).
Review Your Pass/Fail Status
The calculator instantly shows if you meet lender requirements. You'll see your actual ICR versus what's required and the minimum rent needed.
The calculator instantly shows if you meet lender requirements. You'll see your actual ICR versus what's required and the minimum rent needed.
Check the Solutions
If you fail, we show exactly what to adjust - increase rent, reduce LTV, switch to a 5-year fix, or use a limited company structure.
If you fail, we show exactly what to adjust - increase rent, reduce LTV, switch to a 5-year fix, or use a limited company structure.
What the Numbers Actually Mean
What the Numbers Actually Mean
What the Numbers Actually Mean
Your ICR (Interest Cover Ratio)
Your ICR (Interest Cover Ratio)
This is how many times your rent covers the mortgage interest. 125% means your rent must be 1.25x the monthly interest payment. Higher is better - it's your safety buffer.
Minimum Rent Required
Minimum Rent Required
The absolute minimum monthly rent you need to pass the stress test at your chosen loan amount. Come in below this and lenders won't approve your mortgage.
Maximum Purchase
Maximum Purchase
Price Based on your expected rent, this is the highest property price you can afford at your target LTV. Go above this and the numbers don't work - no matter how good the deal looks.
The Stress Test Rate
The Stress Test Rate
This isn't your actual mortgage rate. Lenders test you at higher rates (typically 5.5-8%) to ensure you can still afford payments if rates rise. 5-year fixes get better stress rates than 2-year fixes - sometimes 2-3% lower.
Why Some Deals Pass and Others Fail
Product Type Changes Everything
Product Type Changes Everything
A 5-year fixed rate gets stress tested at 4.5-5.5%, while a 2-year fix faces 6.5-8%+. Same property, same rent - but the 5-year fix lets you borrow 25-35% more. Don't pick products based solely on rate; the stress test matters more.
A 5-year fixed rate gets stress tested at 4.5-5.5%, while a 2-year fix faces 6.5-8%+. Same property, same rent - but the 5-year fix lets you borrow 25-35% more. Don't pick products based solely on rate; the stress test matters more.
Your Tax Status Costs You
Your Tax Status Costs You
Higher-rate taxpayers need 145% ICR instead of 125%. That's roughly £200-300 more monthly rent required on a £200k loan. Limited companies always get 125% regardless of director income - which is why serious landlords are switching.
Higher-rate taxpayers need 145% ICR instead of 125%. That's roughly £200-300 more monthly rent required on a £200k loan. Limited companies always get 125% regardless of director income - which is why serious landlords are switching.
LTV Creates a Double Impact
LTV Creates a Double Impact
Lower LTV means smaller loan (easier to pass), but also means you can't extract as much capital. The sweet spot is usually 70-75% - enough leverage to make returns work, low enough that most properties pass stress testing.
Lower LTV means smaller loan (easier to pass), but also means you can't extract as much capital. The sweet spot is usually 70-75% - enough leverage to make returns work, low enough that most properties pass stress testing.
Portfolio Landlords Face Extra Scrutiny
Portfolio Landlords Face Extra Scrutiny
Own 4+ BTL properties? You're a portfolio landlord. Lenders will stress test your entire portfolio, not just the new purchase. One weak property can block all future lending until you fix or sell it.
Own 4+ BTL properties? You're a portfolio landlord. Lenders will stress test your entire portfolio, not just the new purchase. One weak property can block all future lending until you fix or sell it.
Frequently Asked Questions
Frequently Asked Questions
Frequently Asked Questions
Why do lenders use higher rates than my actual mortgage?
Why do lenders use higher rates than my actual mortgage?
Why do lenders use higher rates than my actual mortgage?
Why do lenders use higher rates than my actual mortgage?
Can I use my personal income to top up rental income?
Can I use my personal income to top up rental income?
Can I use my personal income to top up rental income?
Can I use my personal income to top up rental income?
What if the property is currently let below market rate?
What if the property is currently let below market rate?
What if the property is currently let below market rate?
What if the property is currently let below market rate?
Does a guarantor help pass the stress test?
Does a guarantor help pass the stress test?
Does a guarantor help pass the stress test?
Does a guarantor help pass the stress test?
Should I use a 2-year or 5-year fix?
Should I use a 2-year or 5-year fix?
Should I use a 2-year or 5-year fix?
Should I use a 2-year or 5-year fix?
Stop Wasting Time on Deals That Won't Get Approved
Now you know if your numbers work - but that's only half the battle. The real question: where are the deals that actually stack?
Property Filter shows you motivated sellers in your area ready to negotiate below asking price. Stop scrolling through hundreds of listings where the numbers are already tight at full price. Start viewing properties where you can buy right and build in the stress test buffer from day one.
Join 1,400+ investors finding deals that actually get approved.
Stop Wasting Time on Deals That Won't Get Approved
Now you know if your numbers work - but that's only half the battle. The real question: where are the deals that actually stack?
Property Filter shows you motivated sellers in your area ready to negotiate below asking price. Stop scrolling through hundreds of listings where the numbers are already tight at full price. Start viewing properties where you can buy right and build in the stress test buffer from day one.
Join 1,400+ investors finding deals that actually get approved.
Stop Wasting Time on Deals That Won't Get Approved
Now you know if your numbers work - but that's only half the battle. The real question: where are the deals that actually stack?
Property Filter shows you motivated sellers in your area ready to negotiate below asking price. Stop scrolling through hundreds of listings where the numbers are already tight at full price. Start viewing properties where you can buy right and build in the stress test buffer from day one.
Join 1,400+ investors finding deals that actually get approved.
Stop Wasting Time on Deals That Won't Get Approved
Now you know if your numbers work - but that's only half the battle. The real question: where are the deals that actually stack?
Property Filter shows you motivated sellers in your area ready to negotiate below asking price. Stop scrolling through hundreds of listings where the numbers are already tight at full price. Start viewing properties where you can buy right and build in the stress test buffer from day one.
Join 1,400+ investors finding deals that actually get approved.