You are here: Home - News -

The Mansfield launches ‘top slicing’ buy to let to 80% LTV

by: Tim Chen
  • 13/10/2017
  • 0
The Mansfield launches ‘top slicing’ buy to let to 80% LTV
The Mansfield Building Society has launched a “top slicing” buy-to-let mortgage, which takes a landlord’s personal income into consideration alongside the Interest Coverage Ratio (ICR) when assessing affordability.

By taking into account a landlord’s personal income, also known as top slicing, lenders use a borrower’s personal income to make up for any shortfalls in rent during the mortgage approval process.

The announcement comes in the wake of new regulations introduced on 30 September by the Prudential Regulation Authority (PRA) — which introduced stress tests to see if a borrower can afford repayments if interest rates were to hit 5.5%, and requiring lenders to check a landlord’s entire property portfolio before approving a buy-to-let mortgage.

To qualify for the product, landlords must have a minimum rental income equivalent to 100% of the monthly mortgage payment, calculated at the product pay rate which is currently 3.99%.

The lender offers up to 80% Loan to Value (LTV), inclusive of fees, and is available for purchase and remortgage, including capital raising.

Because the society underwrites mortgages individually instead of using automated credit scoring systems, there are opportunities created by the PRA’s new regulatory framework, says Mike Taylor, head of products and savings: “Not only can our individual approach more easily adapt to the latest regulatory changes, we can take into consideration the broader circumstances of a buy-to-let landlord.”

“If there’s firm evidence of sustainable personal income in the background then we will take a common sense view on affordability.” Taylor added, “As the buy-to-let sector continues to evolve, we believe brokers will welcome our pragmatic response.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • Jo Wilson from Legal & General Home Finance talks about her Best BDM nomination and her love for the equity release…
  • Sponsored content: Four reasons your client wants a product transfer by Halifax Intermediaries…
  • Nationwide trims rates as Accord ups cashback on buy-to-let deals -

Read previous post:
API-driven ‘one-touch’ mortgage application strategy endorsed by brokers

Top distributor bosses in the mortgage industry have followed the example set by Mortgage Advice Bureau in endorsing the strategy...