Our buy to let calculator uses the following ‘interest cover ratios’:
For higher rate taxpayers a stress rate of 145% x 5.5% will apply (or 5% if a 5 year fixed rate is chosen)
For Basic/Nil rate tax payers, a lower stress rate of either 125% x 5.5% or 125% x 5% will apply
Do not use this calculator if top-slicing is required. Please refer to our separate top-slicing criteria or speak to your BDM.