Precise Mortgages brings back top slicing

Precise Mortgages has relaunched its buy-to-let top slicing proposition whcih enables 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’ entire 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 5-year fixed rate products, with rates from 2.79% and a loan-to-value (LTV) of up to 75%.

Loan sizes range from £75k up to £3m, with no minimum income requirements for loans under £1m.

Adrian Moloney (pictured), group sales director, 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 2-year fixed rate, as well as our 5-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.”

Top slicing 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.

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