Buy-To-Let Interest Coverage Ratio Calculator (United Kingdom)
Buy-To-Let Interest Coverage Ratio Calculator (United Kingdom): a planned Super Calculator tool. Stub page while the tool and its worked example are prepared.
Buy-To-Let Interest Coverage Ratio Calculator (United Kingdom) is a planned calculator in the real estate section of Super Calculator, covering country mortgage regimes.
What this calculator will compute
Inputs: monthly rent (GBP), loan amount (GBP), pay rate (%), stress rate (%), minimum ICR (%) and taxpayer band.
Outputs: ICR achieved (%), maximum loan supported (GBP), rent required to pass (GBP) and post-tax cash flow (GBP).
Formula, recorded as scope and not yet verified against a primary source: ICR = expected rental income / interest at a stressed rate. PRA underwriting standards require lenders to stress buy-to-let affordability at a rate above the pay rate and to apply a minimum coverage ratio that is higher for higher-rate taxpayers because of the restriction of finance cost relief to a basic-rate tax credit.
Status
This page is a stub. The calculator is not built, no figure on this page has been verified against the authority that sets it, and nothing here should be used to make a decision. The page exists so that the site structure is complete and so that articles can link this concept on first mention.
The stub carries noindex, nofollow and is excluded from the sitemap.