Gatehouse Bank has reintroduced top slicing for UK residents purchasing a BTL property.
Top slicing can be used where the rent paid by the tenant does not exceed the landlord’s monthly bank payment.
In these cases, subject to certain limits, the borrower’s personal income can be used to top up the shortfall.
To qualify, UK-based landlords will need a minimum annual income of £32,000.
The finance service coverage ratio (FSCR) bandings of 110% for limited companies and 115% for individuals will be implemented.
“We continuously review our products and criteria to ensure that we are providing our customers with the most suitable outcomes for their needs,” said John Mace, senior product manager at Gatehouse Bank.
“We have reintroduced top slicing to broaden our criteria and subsequently help more BTL customers achieve their financial goals.”
The bank has also streamlined its FSCR bandings.
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 apply for higher and additional rate taxpayers purchasing a property individually or as part of a portfolio, and anyone purchasing a HMO or MUFB.
