Our new Top Slicing proposition is already proving popular with landlords and introducers who recognise the benefits it provides, including:
Unlocking access to 2 year Fixed products with rates from 1.99%. Click here for details.
Achieving greater flexibility around loan size.
ICR calculated from 110% of pay rate.
Optimising their investment opportunity.
Demonstrating they can meet financial stresses using surplus earned or portfolio income.
To qualify, rental income must meet a minimum of 110% of the pay rate of the chosen product to ensure this is a viable property. Surplus income can then be used to demonstrate the ability to meet a shortfall against the standard ICR. Where the surplus income used to assess financial stress is taken solely from portfolio rental income, no additional proof of income will be required. Top slicing is not available for First Time Buyers and the repayment method must be interest only.
The data capture process has also been improved so that the underwriting team can make a more informed and accurate decision on affordability helping the customer borrow the required loan amount.
The great news is you’ll no longer have to select top slicing as an option at the start of the process. The DIP will now automatically return a borrowing amount including Top Slicing where available. Underwriting will then use surplus portfolio rental income, earned disposable income or a combination of both to demonstrate the ability to meet financial stress. And remember, no additional proof of income will be required where solely using surplus portfolio rental income. We’ve produced a simple ‘Guide to our system changes’ that demonstrates the new screen layouts and explains how top slicing will now automatically be factored in to loan amounts.
In addition, if you find after submitting an application using rental income only that your customers’ circumstances change, you will be able to switch on to top slicing post submission without the need to rekey the application as long as top slicing was available initially.
To find out more, speak with your Business Development Manager or call our dedicated support team on 0800 116 4385.