Personal income now accepted for buy-to-let

01 February 2018

To help more of your clients get the loan amount they need we allow clients to include personal income in the affordability test*. The rental income must cover 125% of the mortgage interest payment, calculated at a notional rate of 5.50%, with personal income being considered to cover the difference up to 145%.

One affordability calculator

To keep things simple, there’s one affordability calculator so you can check the loan amount we’d offer your client. Continue to declare all of your client’s credit commitments and our calculator will automatically take personal income into consideration during the affordability assessment, where the rental income does not meet 145% of the mortgage interest payment. 

Our rental cover stress tests

We use the following rental cover stress tests which reflect the recent increase to our BTL Variable Rate:


Buy-to-let standard affordability


     Notional stressed rate


Application type



5 year fixed


All other



145% 5.24% 5.50%

Remortgage with additional borrowing

145% 5.24% 5.50%

Remortgage straight balance swap

125% 5.99% 5.99%


Personal income affordability 


Rental cover    

Notional stressed rate

Application type and product

Min rental


Personal income




All buy-to-let applications and products


125% 125%-145% 5.50%

There is no minimum loan size and we allow a maximum loan size of £1million on any one property up to 75% LTV. The minimum property value we accept is £50,000.

Our handy Sales Aid has some examples showing when personal income will and won’t be used. 

Please contact your dedicated Business Development Manager with any queries and they will be happy to help. 

* Personal income is defined as the customer’s net monthly income less any outgoings.

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