Interest Cover Ratio & Like-for-Like Remortgages
Explore flexible affordability routes for Buy to Let lending.
Our Buy to Let affordability options include Interest Cover Ratio (ICR), based solely on rental income, and Like-for-Like Remortgages, which use a simplified rental assessment for clients not increasing their loan. These options are tailored to suit a range of client needs, whether they’re expanding their portfolio or simply switching lenders.
Interest Cover Ratio (ICR)
ICR is a method for assessing Buy to Let affordability which relies solely on the rental income from the property.
How it works:
- No minimum income required
- Ability to pay is assessed on rental income (received in GBP)
- Rental income must be at least 145% of the monthly interest due, inclusive of any product fees added to the loan. This is calculated using the relevant stress rate below:
| Product | Stress rate |
| Fixed rate less than 5 years or a variable rate | The higher of 5.5% or product pay rate +2% |
| Fixed rate 5 years or more | The higher of 4.5% or product pay rate +1% |
- All Buy to Let properties must have an EPC rating of A-E (Scotland A-D), or A-C for Energy Efficient mortgages, before the valuation is carried out. In England and Wales, properties listed on the PRS Exemptions Register are also accepted.
Key features:
- Available on both Standard and Energy Efficient Buy to Let mortgages
- Supports purchase and remortgage applications
- Up to 75% Loan to Value (LTV)
- Maximum individual loan of £750,000
- Maximum portfolio size of 3 mortgaged Buy to Let properties per applicant across all lenders, including Bank of Ireland Group.
Best for clients who:
- Have high-yielding rental properties
- Prefer a rental-only affordability route
- Do not wish or need to use personal income in the assessment.
Buy to Let Like-for-Like Remortgages
Like-for-Like Remortgages are for landlords who want to switch lenders without increasing their loan amount.
How it works:
- No capital raising is permitted
- Aimed at maintaining existing borrowing levels
- Rental income must be at least 125% of the monthly interest due, inclusive of any product fees added to the loan. This is calculated using the relevant stress rate below:
| Product | Stress rate |
| Fixed rate less than 5 years or a variable rate | The higher of 5.5% or product pay rate +2% |
| Fixed rate 5 years or more | The higher of 4.5% or product pay rate +1% |
Key features:
- Streamlined affordability checks
- Available on both Standard and Energy Efficient mortgage products
- Up to 75% Loan to Value (LTV)
- Minimum loan size of £100,000 (exclusive of any product fees)
- Maximum individual loan of £750,000.
Best for clients who:
- Are remortgaging without raising funds
- Have stable rental income
- Want a quicker, simpler application process
Next steps?
Explore our full Buy to Let lending criteria
Check your client's suitability for our products
Use our Buy to Let calculator
See how much your client could borrow using ICR and Like-for-Like Remortgages
