Sharia-complaint lender Gatehouse Bank has reintroduced top slicing for UK residents purchasing a buy-to-let (BTL) property in the UK.
BTL top slicing, or income top-up, is where a lender can consider an applicant’s earned income in addition to rental income when calculating the maximum mortgage that can be borrowed.
According to Criteria Brain, there are 39 lenders that will consider top slicing for BTL applications. Approximately 42 lenders have said that they will not consider top slicing.
The lender said that it has also streamlined its finance service coverage ratio bandings, so for limited companies and basic-rate taxpayers purchasing individual BTL properties or as part of a portfolio, a 125% rate will apply.
A 145% rate will be implemented for higher- and additional-rate taxpayers purchasing a property individually or as part of a portfolio, and anyone purchasing a house in multiple occupation (HMO) or multi-unit freehold block (MUFB).
To qualify for BTL top slicing, a minimum annual income of £32,000 from at least one UK-based applicant is needed, and the FSCR bandings of 110% for limited companies and 115% for individuals will be applied.
John Mace, senior product manager at Gatehouse Bank, commented: “We continuously review our products and criteria to ensure that we are providing our customers with the most suitable outcomes for their needs. We have reintroduced top slicing to broaden our criteria and subsequently help more buy-to-let customers achieve their financial goals.”
In March, Gatehouse Bank resumed its refinance offering for home purchase plan (HPP) products. The lender will accept refinance applications on all products up to 90% finance to value (FTV) and its green finance deals.
Earlier this year, Gatehouse Bank’s home finance distribution director Roger Evans announced he would retire from the business. He has been with the firm since 2019 and started his career at Natwest in 1979.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
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