Specialist lender Precise Mortgages will now accept top slicing on all eligible personal ownership, limited company, portfolio, HMO, and holiday and student let applications.
First-time buyers are excluded. The top slicing feature 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.
Alan Cleary (pictured), managing director of Precise Mortgages, said: “Given that the majority of landlords have other earnings that can be used to show they can meet underwriting standards, lenders need to reflect this in their product offering to support landlords accordingly.
“Top slicing allows landlords to manage their properties in a way they choose and gives them greater access to the products and loan sizes they want and particularly for those who may have been restricted by ICR requirements in the past.”
Across the market as a whole one in three (33%) landlords earn their living purely from their property portfolios, rising to 47% among those with six to 10 properties.
Around one in six (16%) landlords plan to add more properties in the year ahead, with 71% funding purchases with a buy-to-let mortgage.
The specialist lender said it has also streamlined the application process and enhanced its online buy-to-let calculator.