## Use the lender figures, not a generic rate
The PRA expects firms in scope to use ICR and interest-rate affordability stress tests. It does not turn one example percentage into a universal lender rate. The applicable stress rate and ICR must therefore come from the current lender criteria for the application.
The Bank of England's [Bank Rate page](https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate) provides monetary-policy context, but Bank Rate is not a substitute for a product stress rate. Record the lender source, product name and access date next to the stress input.
The Mortgage Works [income criteria](https://www.themortgageworks.co.uk/intermediaries/lending-criteria/income) illustrates why the inputs must stay separate. It lists different ICRs for different applicant and property types and says the gross rent confirmed by the valuer must cover the mortgage interest payment by the applicable ICR.
Use the [FCA mortgage conduct sourcebook](https://www.handbook.fca.org.uk/handbook/MCOB/) to check whether regulated mortgage rules are relevant to the proposed case. The PRA statement and FCA sourcebook cover different scopes.
## Rearrange the rent test
The simplified lender requirement is:
**Qualifying annual rent >= loan x stress rate x ICR multiplier**
Rearrange it to find the rent-supported debt:
**Maximum loan = qualifying annual rent / (stress rate x ICR multiplier)**
The calculation uses gross qualifying rent, not net rent after management and maintenance. A lender may apply its own treatment to the rent, fees and property type.
## Run a controlled stress-rate comparison
Use GBP 15,000 annual rent and 125% ICR in the [buy-to-let stress and ICR calculator](/tools/buy-to-let-stress-icr-calculator):
| Stress rate | Rent-supported loan |
| --- | ---: |
| 5.5% | GBP 218,181.82 |
| 6.5% | GBP 184,615.38 |
| 7.5% | GBP 160,000.00 |
These are controlled sensitivities, not lender quotes.
## Apply the second ceiling
If a property is GBP 200,000 and the product permits 75% LTV, the LTV ceiling is GBP 150,000. In every row above, GBP 150,000 is lower than the rent-supported result, so LTV is the binding ceiling in this controlled example.
Reverse the calculation before relying on the ceiling. GBP 150,000 multiplied by 6.5% and 125% requires GBP 12,187.50 annual qualifying rent.
The [gross and net yield calculator](/tools/gross-net-yield-calculator) separately models gross rent and operating costs such as management, maintenance, insurance and voids. It calculates net rent before borrowing and does not calculate lender stress, finance, tax or after-tax cash flow. Store the operating-cost result separately from the lender stress result for review.