The rent being generated from an investment property must equal the required ICR/DSCR percentage at the rate relevant to that product, as set out in the table below. For example, 125% at 5.00% means that the rental income must be 125% of the mortgage payments assuming an interest rate of 5.00%.
|Applicant||Single properties||HMO and MUFB|
|Basic rate taxpayer (20%)||125%||130%|
|Limited company or LLP||125%||130%|
|Higher rate taxpayer (40%)||140%||145%|
|Additional rate taxpayer (45%)||140%||145%|