What is ICR (UK buy-to-let)? A quick definition and tiny example
ICR (interest coverage ratio) is a rent-to-interest check used by many buy-to-let lenders. Here’s the definition, a tiny example, and links.
Published: 12/03/2026 • Last verified: 12/03/2026
The short answer
ICR usually stands for interest coverage ratio (also called rental cover). In a UK buy-to-let affordability check, it’s a way some lenders compare the rent to the mortgage interest (often tested at a higher “stress” rate) to see whether the property can cover the borrowing.
The exact method and required coverage can vary by lender and borrower type — so treat ICR as a concept, not a single fixed rule.
A tiny example
Assume a lender tests affordability like this:
- Stressed monthly interest: £700/month
- Required ICR: 130%
Required rent would be about:
- (£700 × 1.30 = £910) per month
If the expected rent is £850/month, the rent might cap the amount you can borrow (even if your deposit is large).
Helpful links
- Related calculator: /buy-to-let-mortgage/
- Full guide: /guides/buy-to-let-affordability-icr-stress-rate-explained/
- Glossary: /glossary/icr/
- Glossary: /glossary/stress-rate/
Sources