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Buy to Let Criteria

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Affordability

Interest coverage rate (ICR) test applies to all cases on an interest-only basis

5 or more years’ fixed rate products: initial rate.
All other products: a nominal rate (currently 5.5%) or the initial rate +2%, whichever is higher. All ICR tests are exclusive of any fees that can be added to the loan.

ICR

Interest Coverage Rates Table
* Where all applicants are declared as basic rate tax status during application, proof of basic rate tax status will be required. Where the ICR meets 140%, we will assess the cases as such and will not require proof of tax status

Acceptable proof is tax code status letter/payslip/p60/tax calculation plus tax year overview. Other items may be acceptable on a case by case basis.