Rent to interest cover amounts vary between lenders. From the 1st January 2016 the PRA has set out stricter guidelines around rental stress tests and affordability checks for borrowers particularly individual applicants. The message behind the guidelines is that 125% cover is likely to be insufficient. Several lenders increased stress tests for personal borrowers from 125% to 145% before the 1st Jan. Lenders that accept limited companies have maintained stress rates at 125% for those borrowing via a corporate vehicle.
Last updated: 04/01/2017