Buy to Let Criteria

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Interest coverage rate (ICR) test will apply on all cases on an interest only basis. The interest rate used to calculate the ICR test will be:

  • 5 or more years fixed rate products: the initial rate.
  • Tracker and 2 year fixed rates products: A nominal rate (currently 5.5%) or the initial rate + 2%, whichever is higher.


Tax rate Individuals Limited Companies / LLP HMO / Multi-unit Blocks New Build & Flats above commercial
Basic rate tax payer 125% 125% 140% 125%
Higher rate tax payer 140% 125% 140% 140%

Proof of basic rate tax status - all applicants

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.