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This works out the largest HMO loan the rent and the property value support. Lenders size the loan on rent, but will also check income, residency and the currency you earn in. It is an illustration, not a lending decision.
Your figures
All rooms together, before costs
Our expat guide quotes up to 70% for expat HMO lending
The rate lenders test the rent against
Used for the monthly payment only
Your results
- Loan the rent supports
- £567,273
- Loan at 70% of value
- £245,000
- Deposit needed
- £105,000
- Rental cover at this loan
- 289%
- Monthly interest at 5.5%
- £1,123
Lenders size the loan on the rent and the value. They will also check your income, residency and the currency you earn in.
Illustrative figures only, based on the numbers you enter. Not a mortgage offer.
How we calculate Expat Affordability
Methodology and data sources, updated October 2026
Formulas
- Loan the rent supports
(Monthly rent × 12) ÷ (Rental cover % ÷ 100) ÷ (Stress rate % ÷ 100)The largest loan whose interest, at the stress rate, the rent covers by the required margin.
- Loan by value
Property value × (Maximum loan to value % ÷ 100)The most a lender will lend against the property's value.
- Maximum loan
Lower of the loan the rent supports and the loan by valueWhichever limit is lower sets the loan. The deposit is the property value minus this loan.
- Rental cover at this loan
(Monthly rent × 12) ÷ (Maximum loan × Stress rate % ÷ 100) × 100How many times the stressed interest the rent covers, as a percentage.
- Monthly interest
Maximum loan × (Interest rate % ÷ 100) ÷ 12Interest-only payment at the interest rate you enter.
Data sources
- Yes:Typical specialist HMO lending criteria (rental cover, stress rate, pay rate), checked October 2026
- Yes:Our expat HMO mortgage guide for the typical maximum loan to value
- Yes:Our HMO rate book (data/rates-snapshot.ts) for the typical 5-year pay rate
Key assumptions
- Rental cover, limited company
- 125%
- Rental cover, higher-rate taxpayer
- 145%
- Rental cover, basic-rate taxpayer
- 125%
- Stress rateVaries by lender and fixed period; you can change it
- 5.5%
- Maximum loan to valueFrom our expat HMO guide; you can change it
- 70%
- Interest rateInterest only; used for the monthly payment only
- 5.5%
- Overseas income and currencyHMO buy-to-let loans are sized on rent; lenders check income separately
- Not modelled
Next steps
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