Serviced Accommodation
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Below ICR

SA Finance Calculator

Calculate finance options for serviced accommodation properties including ICR requirements and stress testing.

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Free to use

Property & Loan Details

Income Projections

Operating Costs

Lender Stress Test

Fails Stress Test

ICR: 0.0% | Required: 145.0%

SA Mortgage Rate Guidance

60% LTV or less

5.29% - 6.19%

61-65% LTV

5.49% - 6.49%

66-70% LTV

5.79% - 6.79%

71-75% LTV

6.29% - 7.49%

SA/Holiday Let mortgages typically have higher rates than BTL. FHL status may provide tax benefits.

Loan Summary

Loan Amount

£0

LTV

0.0%

Monthly Interest

£0

Interest only

Income Analysis

Gross Annual Income

£0

0 nights @ £150

Operating Costs

£0

Net Operating Income

£0

Affordability

ICR (Current Rate)

0.0%

ICR (Stressed)

0.0%

Max Loan at ICR

£0

Returns

Monthly Cashflow

£0

Annual Cashflow

£0

Cash on Cash Return

0.0%

Break-Even Occupancy

0.0%

To cover all costs

Effective Yield

0.0%

NOI / Property Value

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About the SA Finance Calculator

What it does and how it helps you

The SA Finance Calculator helps UK serviced accommodation investors model finance options, understand lender requirements, and stress-test affordability. Calculate Interest Coverage Ratio (ICR), loan amounts, and cashflow with SA-specific mortgage rates that are typically higher than BTL but offer greater income potential.

ICR calculation with stress testing (125-145%)
SA-specific mortgage rate guidance by LTV
Breakeven occupancy analysis
Operating cost modeling (platform fees, management, cleaning)

How It Works

Understanding the calculation method

The SA Finance Calculator works by: 1. Property & Loan Setup - Enter property value, deposit, and SA type (Holiday Let FHL, Short-Term Let, or Serviced Accommodation) 2. Income Projections - Model gross income based on Average Daily Rate (ADR) and realistic occupancy rates for your area 3. Operating Costs - Account for platform fees (Airbnb/Booking.com 12-20%), management, cleaning, utilities, and maintenance 4. ICR Calculation - Calculate Interest Coverage Ratio at both current and stressed rates (typically 125-145% required) 5. Affordability Test - Determine maximum loan amount based on lender ICR requirements The calculator uses current SA mortgage rate bands (60-75% LTV) and stress-tests your deal against typical lender requirements. SA mortgages require higher ICR than BTL due to the variable nature of short-term letting income.

When to use this calculator

Use this calculator when sourcing SA finance, comparing lender offers, or assessing deal viability before approaching brokers. Essential for understanding how much you can borrow based on projected income, ensuring your deal passes lender stress tests, and planning deposit requirements. Particularly useful for demonstrating affordability to SA specialist lenders.

Frequently Asked Questions

Common questions about this calculator

SA lenders typically require 125-145% Interest Coverage Ratio (ICR) at a stressed interest rate. This means your gross rental income must be 1.25-1.45x your mortgage interest at the stress rate. This is higher than BTL (typically 125%) due to the variable nature of short-term letting income. Some lenders may require 145% or higher for less experienced operators.
SA mortgage rates are typically 0.5-1.5% higher than BTL rates. As of 2024, expect 5.29-6.19% at 60% LTV, rising to 6.29-7.49% at 71-75% LTV. Rates vary by lender, experience, property type, and business plan. Holiday Let (FHL) properties may access slightly better rates than full SA due to HMRC recognition.
Lenders typically use gross projected income (ADR x occupancy x 365) before expenses for ICR calculations. They'll scrutinize your ADR and occupancy assumptions against local market data, often requiring evidence from Airbnb/comparable listings. Most apply a stress test using 50-60% occupancy and stressed interest rates, even if you project higher occupancy.
Yes, but expect stricter terms. First-time SA investors typically face: lower maximum LTV (60-70%), higher interest rates, stricter ICR requirements (145%+), and smaller loan amounts. Some lenders offer 'First SA' products. Building a track record with one property significantly improves terms for subsequent purchases.
Most SA lenders require 25-40% deposit (60-75% LTV), higher than BTL's typical 75-80% LTV. First-time SA operators may need 30-40% deposits. Holiday Let (FHL) properties might access higher LTV (75%) with some specialist lenders. The higher deposit reflects the perceived higher risk of short-term letting versus assured tenancies.

Related Property Terms

SA mortgageHoliday let financeInterest Coverage Ratio ICRServiced accommodation loanAirbnb mortgageShort-term let financeSA lender requirementsCommercial mortgage SAFHL mortgage ratesSA stress test