Are there any new indications from the Bank of England report regarding lending criteria or stress testing for property investment loans?
Quick Answer
The Bank of England's base rate of 4.75% directly impacts buy-to-let lending criteria, most notably through stress testing. Lenders primarily use a 125% rental coverage ratio at a notional 5.5% interest rate to assess affordability for investment loans.
About This Topic
Bank of England's 4.75% base rate impacts BTL lending criteria. Understand the 125% @ 5.5% stress test and how it affects property investment loans and affordability in December 2025.
This question is part of our Buying Your First Property category, providing expert guidance on UK property investment.
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