How DSCR and ICR actually work, explained with real Cardiff 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 Cardiff investment deals: a Central Square CF10 single-let office on FRI, a Wellfield Road CF24 shop-with-flats parade, a four-asset CF14 / CF5 portfolio across Heath, Llanishen and Llandaff, and a Cardiff Bay CF10 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@commercialmortgagescardiff.co.uk and we will work it in.
Coming soon, full guide to DSCR and ICR for Cardiff commercial investment mortgages.
Outline
- Definitions: ICR vs DSCR
- Standard thresholds and the stress test
- Worked example 1: Central Square CF10 single-let office, ICR
- Worked example 2: Wellfield Road CF24 semi-commercial parade, blended ICR
- Worked example 3: four-asset Heath / Llanishen / Llandaff CF14 / CF5 portfolio, DSCR
- Worked example 4: Cardiff Bay CF10 mixed-use block, DSCR with residential blend under Renting Homes (Wales) Act
- Engineering the cover: term length, LTV, structure
- Lender-by-lender threshold table at mid-2026
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