Precise Mortgages has relaunched buy-to-let top slicing.
Top slicing is designed to enable customers to use surplus portfolio or earned disposable income to prove they can meet any financial stresses on a new loan application, rather than through the rental income of the property alone.
The feature is available across Precise Mortgages’ complete buy-to-let range on all eligible personal ownership, limited company, portfolio and HMO applications.
The feature is integrated into the lender’s system and guides brokers step-by-step through the application process before presenting them with product and loan amount options available to their customers at the end.
Options include two or five-year fixed rate products, with rates from 2.79% and an LTV of up to 75%. Loan sizes range from £75,000 up to £3m, with no minimum income requirements for loans under £1m. The feature is not available to first-time buyers and applicants in receipt of furlough income or Self-Employment Income Support Scheme (SEISS) payments.
A calculator is also available to help brokers identify how much surplus portfolio and/or earned income is required to achieve the requested loan size if there is a shortfall.
Rental income must meet a minimum of 110% ICR of the pay rate of the chosen product to ensure it is a viable property. Surplus income can then be used to demonstrate the ability to meet any rental shortfall against the standard ICR.
Customers can switch to top slicing even after applying without the need for a new application, offering further options if properties suffer a down valuation.
Adrian Moloney, group sales director at Precise Mortgages, said: “The relaunch of our popular top slicing feature demonstrates how committed we are to supporting the market and our broker partners.
“Top slicing allows landlords greater choice in the way they manage their properties and could help them to optimise their investment opportunities. We’re reintroducing a wider choice of products by unlocking access to our two-year fixed rate, as well as our five-year fixed rate mortgage products.
“These products could be particularly useful for those who may have been restricted from investment opportunities, as well as helping landlords achieve greater flexibility around loan size.”