Buy-to-let stress test calculator

Buy-to-let lenders do not rely on your salary alone — they stress rental income against mortgage payments at a higher rate than you might pay today, with a minimum interest cover ratio. A property can look affordable on the product rate but fail when stressed.

This BTL stress test calculator UK landlords can use for planning shows both ceilings — max loan by rent and max loan by LTV — and highlights which binds. A clear pass or fail verdict tells you whether your wanted loan fits typical criteria.

The rent ceiling is annual rent divided by ICR and the stressed annual rate. The LTV ceiling is property value multiplied by the maximum LTV (often 75% for BTL). Your achievable loan is the lower figure.

If you fail because rent binds, the calculator shows the monthly rent required for your wanted loan. If LTV binds, consider a larger deposit or bridging while you improve the asset.

On £1,500 monthly rent, £300,000 value, 75% max LTV and 5.5% stress rate at 145% ICR (higher-rate taxpayer), max loan by rent is about £226k and by LTV is £225k — LTV binds. A wanted loan of £225k passes with minimal margin.

At 6.5% stress (+1%), max loan by rent falls to about £192k — showing how rate rises tighten affordability. Edit inputs to match your case, then request an exact figure from Tera.