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Video: Lenders considering excess portfolio income when top-slicing – 3MC
Lenders are beginning to expand their use of top-slicing to include excess rental income, according to Doug Hall, director of 3MC.
Speaking on Mortgage Solutions Television in association with BM Solutions, Hall noted the change was a welcome and interesting development to the market.
Discussing product evolution in buy-to-let, Hall said: “We’re starting to see a bit more on the top-slicing, and how lenders interpret top-slicing.”
He added that the majority of lenders that use top-slicing in buy-to-let products tend to work on the investor’s personal background income, but this was changing.
“We’re starting to see a little bit of movement where they are considering using the surplus income within the portfolio itself, as opposed to the declared. So that’s quite interesting.”
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Phil Rickards, head of BM Solutions, noted that the raft of regulatory change had prevented lenders from being as innovative as they possibly could be.
https://vimeo.com/356874897
The panel comprised:
Victoria Hartley, group editor, Mortgage Solutions
Phil Rickards, head of BM Solutions
Andrew Montlake, managing director, Coreco
Doug Hall, director, 3mc