Supporting your buy-to-let clients
We want to help your clients access the mortgages they need to support their property investment plans – but in some cases the rental income may not be enough for us to offer the loan amount they need.
That’s why, in certain cases, we can offer both Personal and Portfolio Income backed top slicing which could allow your client to borrow more than they otherwise could, based purely on the rental income.
Top slicing explained
Top slicing can be applied where rental income alone achieves a minimum ICR of 125%, calculated against the stress rate of the selected product. There are two types we can consider, with summary details below…
Personal income backed is where an applicant uses surplus earned income from other sources to supplement a rental shortfall.
- Purchases and remortgages accepted
- Individual applicants only (not a Limited Company SPV)
- Standard Properties only, excluding New Builds (not HMO, MUFB or FAC)
- At least one applicant must be earning minimum £50,000 per annum
- Evidence must be submitted via an Income & Expenditure form.
Portfolio income backed is where a portfolio applicant uses surplus rental income from any properties being mortgaged to, or currently held with Zephyr, to supplement a rental shortfall.
- The aggregate ICR across all mortgages with Zephyr must be at least 155% using the current product rates applying to each loan
- Surplus income can stem from any property type, although it may only be applied to Standard properties.
Top slicing checker…
Try our illustrative calculator to see whether your client is eligible for top slicing with us. Call our expert team today on 0370 707 1894 Mon to Fri, 9am to 5pm
