How DSCR and ICR actually work, explained with real Liverpool examples
Every lender quote on a commercial investment mortgage tests one of two cover ratios, ICR (interest cover ratio) or DSCR (debt-service coverage ratio). Get the test wrong and the offer prices down at credit committee, or falls over completely. This piece walks through both ratios using real-shape Liverpool investment deals: an Old Hall Street L3 office let on FRI, a Lark Lane L17 shop-with-flats parade, a four-asset L18 / L25 portfolio across Mossley Hill and Woolton, and a Baltic Triangle L8 mixed-use block. We work the numbers at pay rate and at stressed rate, show where each lender sets the threshold, and explain how to engineer the structure (term length, LTV step-down, fixed vs tracker) so the case clears comfortably.
This piece is in preparation.
The outline below is the planned structure for the full piece. Send a topic suggestion or a follow-up question to enquiries@commercialmortgagesliverpool.co.uk and we will work it in.
Coming soon, full guide to DSCR and ICR for Liverpool commercial investment mortgages.
Outline
- Definitions: ICR vs DSCR
- Standard thresholds and the stress test
- Worked example 1: Old Hall Street L3 single-let office, ICR
- Worked example 2: Lark Lane L17 semi-commercial parade, blended ICR
- Worked example 3: four-asset Mossley Hill / Woolton L18 / L25 portfolio, DSCR
- Worked example 4: Baltic Triangle L8 mixed-use block, DSCR with residential blend
- Engineering the cover: term length, LTV, structure
- Lender-by-lender threshold table at mid-2026
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