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BM Solutions launches top slicing for BTL applications

  • 07/09/2023
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BM Solutions launches top slicing for BTL applications
Buy-to-let lender BM Solutions will allow top slicing for eligible buy-to-let applications from today.

Top slicing permits customers who have a shortfall in required lending to use a proportion of earned income when the rental income for the buy-to-let property is not enough to meet its standard rental cover ratio calculation (RCR).

Portfolio landlord and let-to-buy customers do not qualify for top slicing.

To qualify for top slicing, there needs to be minimum income of £100,000 per application. This can be either PAYE, self-employment, pension, profit from UK land and property.

The minimum RCR is 125 per cent and the maximum RCR is 145 per cent. Below or over the standard RCR calculation is offered and the maximum loan available will be offered.

A full affordability assessment will be carried out as part of application automatically to ensure that minimum top slicing requirements are meet and customers have sufficient disposable income to cover rental shortfalls.

Leigh Church (pictured), head of BM Solutions, said: “We recognise the needs of landlords and brokers and have made these changes to support them. We continue to innovate and flex our approach and products to support the market while maintaining robust controls on affordability.”

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