Our free buy to let mortgage calculator UK tool shows your monthly mortgage payment, gross rental yield, interest coverage ratio stress test result and the maximum loan your rental income supports. Works for personal and limited company BTL.
No personal data collected. Results are indicative. ICR stress test uses 5.5% as a standard indicative rate.
Most buy to let lenders require 25% deposit minimum and rental income to cover the mortgage payment by at least 125% at a stress test rate (145% for limited company BTL). Gross yield, monthly payment and ICR all feed into whether a lender will approve the loan at the amount you need.
The ICR is the most common reason BTL mortgage applications are declined at the numbers stage. Understanding it before you apply saves time.
The interest coverage ratio is the percentage by which your rental income must exceed the interest-only mortgage payment at the lender's stress test rate. Most personal BTL lenders use 125%. Limited company BTL lenders typically use 145%. The stress test rate is usually higher than the actual mortgage rate you will pay.
In practice: if you are borrowing £150,000 and the lender uses a 5.5% stress test rate, the interest-only payment at that rate is £687.50 per month. At 125% ICR, rental income must be at least £859. At 145% ICR, it must be at least £997. If your expected rent is below those thresholds, the lender may reduce the loan amount.
| Mortgage type | Minimum deposit | ICR requirement | Stress test rate (typical) | Rates vs personal |
|---|---|---|---|---|
| Personal BTL | 25% | 125% | 5.0% to 5.5% | Lower |
| Limited company BTL | 25% to 30% | 145% | 5.5% to 6.0% | Higher |
| HMO (personal) | 25% to 30% | 125% to 145% | 5.5%+ | Higher than standard BTL |
| Holiday let | 25% to 30% | 145%+ (seasonal) | Varies by lender | Higher |
Woodhall Mortgages is a whole-of-market, FCA-authorised broker (FRN 762513) based in Halifax, West Yorkshire. We compare buy to let mortgage deals across the full market, including specialist lenders for limited company BTL, HMO and holiday let properties. Most BTL mortgages are not regulated by the FCA.
The mortgage side of limited company BTL is manageable. The tax question is where you need specialist advice. Whether a limited company saves you tax depends entirely on your personal tax position, how you extract profits and the additional costs of running a company. An accountant who specialises in property investment should advise before you decide on the structure.
The calculator gives you the numbers. Woodhall Mortgages finds the lenders whose criteria match those numbers across the full market, including specialist BTL lenders not available direct.
Get BTL Mortgage AdviceWoodhall Mortgages compares buy to let mortgage rates across the full market, including specialist lenders for limited company, HMO and holiday let properties. We identify lenders whose criteria match your rental income and LTV before any application is submitted.
Initial discussion free. A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. This fee is non-refundable once charged. We may also receive commission from the lender. Most buy-to-let mortgages are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments.
Get BTL Mortgage AdviceWoodhall Mortgages is authorised and regulated by the Financial Conduct Authority (FRN 762513). As a whole-of-market mortgage broker, we consider mortgages from across the market, subject to lender criteria and product availability. Most buy-to-let mortgages are not regulated by the FCA. This calculator is for general guidance only and does not constitute regulated financial or tax advice. ICR calculations use 5.5% as an indicative stress test rate; actual lender stress test rates vary. Results do not include fees, arrangement costs or tax implications. Always seek independent tax advice before deciding on an ownership structure. Your property may be repossessed if you do not keep up repayments on your mortgage.
Buying a home or reviewing your mortgage can feel complicated, but it doesn’t have to be. A quick conversation can give you clarity on your options, your budget, and the next realistic steps. There is no obligation and no pressure, just straightforward guidance tailored to you. Complete the short form below and we will be in touch to help you move forward with confidence.
