Top Slicing

Where an application does not meet affordability requirements based solely on rental income (i.e. rental income does not cover either 145% or 125% of the stressed mortgage payment) the Society may utilise a full affordability assessment to clarify whether the loan is affordable. This assessment will mirror a standard residential affordability assessment with the shortfall amount included as a financial commitment (e.g. a monthly loan deduction).

Additionally, the following criteria must also be applied wherever top slicing is used as the affordability measure for BTL applications:

• Minimum earned income of £50,000 required
• Rental income must meet 100% ICR requirement inclusive of the relevant stressed rate
• Not available for first time buyers / non-owner occupiers
• Maximum age aligned with regulated BTL at 80 years old