How DSCR and ICR actually work, explained with real Bristol 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 Bristol investment deals: a Temple Quay BS1 office let on FRI, a Gloucester Road BS7 shop-with-flats parade, a four-asset BS8 / BS9 portfolio across Clifton and Henleaze, and a Wapping Wharf BS1 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@commercialmortgagesbristol.co.uk and we will work it in.
Coming soon, full guide to DSCR and ICR for Bristol commercial investment mortgages.
Outline
- Definitions: ICR vs DSCR
- Standard thresholds and the stress test
- Worked example 1: Temple Quay BS1 single-let office, ICR
- Worked example 2: Gloucester Road BS7 semi-commercial parade, blended ICR
- Worked example 3: four-asset Clifton / Henleaze BS8 / BS9 portfolio, DSCR
- Worked example 4: Wapping Wharf BS1 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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