Any fees that will be added to the loan will be included in the loan amount used in both current and future affordability calculations.
All calculations, regardless of the product selected, will be based on either the current reference rate published on our website, or the product charging rate plus 2%, whichever is the greater. Future affordability will be taken into account for all applications, and therefore may limit the maximum loan amount available. Before submitting an application, please ensure you use our online calculators to check how much we may be able to lend your clients.
The affordability of the application will be assessed as follows:
- For individual and joint applicants, and for limited liability partnerships (LLPs) with expatriate members, the gross rental income should be equal to, or exceed, the Interest Coverage Ratio (ICR) of 140%
- For limited company applications, the gross rental income should be equal to, or exceed, the ICR of 130%
Applicant type |
Single self-contained units |
Expatriate applicants and LLP’s with expatriate members |
140% |
Limited company with expatriate directors |
130% |