Precise Mortgages relaunches top slicing for buy to let

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  • 04/05/2021
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Precise Mortgages relaunches top slicing for buy to let
Precise Mortgages has reintroduced its buy-to-let top slicing proposition to allow borrowers to use surplus portfolio or earned disposable income to prove affordability, rather than rental income.

 

The feature is available across the lender’s entire buytolet range including individual, limited company, portfolio and homes in multiple occupancy (HMO) products.  

It is not available to first-time buyers and applicants who are receiving furlough income or Self-Employment Income Support Scheme (SEISS) payments.  

A calculator is also available to help brokers identify how much surplus portfolio or earned income is required to achieve a requested loan size in the case of a shortfall. 

Rental income must meet a minimum of 110 per cent interest cover ratio (ICR) of the pay rate of a product for the property to be eligible. Surplus income can then be used to prove the borrower can make up any shortfall against the standard ICR.   

Customers can switch to top slicing after they have applied for a mortgage without resubmitting, in case further options are needed due to down valuations. 

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.” 

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