Suffolk introduces top-slicing on expat BTL products

Suffolk Building Society is introducing top-slicing on expat BTL products, as well as two-year UK BTL.

This comes into effect from tomorrow, 28th October.

The building society sets its ICR at 125% for basic tax payers and 145% for higher and additional rate tax payers.

Where the rental income falls short, top-slicing will allow the building society to use some of the borrower’s personal disposable income to provide a top-up, where the rental income meets a minimum ICR of 125% at product rate.

A maximum of two applicants will be allowed with a minimum £40,000 income requirement for one applicant, or a combined income of £65,000 per application.

Top-slicing will not be available for the society’s holiday let mortgages.

"The BTL market has evolved significantly, and many landlords now have diverse income streams in addition to rental,” said Charlotte Grimshaw, head of intermediaries at Suffolk Building Society.

“Our new top slicing proposition recognises this reality by allowing surplus personal income to be considered in affordability assessments.

“This provides greater flexibility for landlords who may otherwise be constrained by rental stress testing alone, whilst maintaining our responsible approach to lending.

“Ultimately, it's about giving brokers more options and helping landlords continue to invest in the private rented sector at a time when demand for rental homes remains strong."