Lenders Offering the Best Rental Calculations for Highest Loans
Best DSCR (Debt Service Cover Ratio) for Landlord Mortgages
Landlord Mortgages – Debt Service Cover Ratio
The debt service coverage ratio (DSCR), also known as “debt coverage ratio,” (DCR) is the ratio lenders use to calculate the maximum amount of mortgage advance available. This is calculated based on the mortgage interest payment charged by the lender for the given mortgage product, serviced by the rental income produced by the security property.
Rental Stress Tests: Most buy to let lenders will use a notional 5% mortgage interest to calculate the monthly interest payment which must be serviced by the rental income by a factor of 125%. This ensures the rental income for the property is sufficiently strong to support the level of borrowing being requested.
|Precise Mortgages||70%||125%||3.67%||Term Tracker|
|Axis Bank||75%||125%||4.09%||5 Year Fixed|
|Fleet Mortgages||75%||125%||4.19%||Life time tracker|
|Foundation Home Loans||75%||125%||4.39%||5 Year Fixed|
|Saffron B.Soc||75%||125%||4.69%||3 Year Discount|
|Saffron B.Soc||80%||125%||4.89%||3 Year Discount|
|Kent Reliance B.Soc||75%||130%||4.19%||5 Year Fixed|
|Kent Reliance B.Soc||80%||130%||4.59%||5 Year Fixed|
|Kent Reliance B.Soc||85%||130%||5.29%||5 Year Fixed|