Adrian Moloney

Precise relaunches top slicing

Precise Mortgages has reintroduced its BTL top slicing offering.

The proposition enables customers to use surplus portfolio or earned disposable income to prove they can meet any financial stresses on a new loan application, rather than through the rental income of the property alone.

The feature is available across Precise Mortgages’ entire BTL range on all eligible personal ownership, limited company, portfolio and HMO applications.

It cannot be used by first-time buyers and applicants in receipt of furlough income or Self-Employment Income Support Scheme (SEISS) payments.

The range — which offers loans from £75,000 to £3m — includes two- or five-year fixed-rate products, with rates from 2.79% and a maximum 75% LTV.

There are no minimum income requirements for loans under £1m.

Adrian Moloney, group sales director at Precise Mortgages (pictured above), said: “The relaunch of our popular top slicing feature demonstrates how committed we are to supporting the market and our broker partners.

“Top slicing allows landlords greater choice in the way they manage their properties and could help them to optimise their investment opportunities. 

“These products could be particularly useful for those who may have been restricted from investment opportunities, as well as helping landlords achieve greater flexibility around loan size.”

A calculator is also available to help brokers identify how much surplus portfolio and/or earned income is required to achieve the requested loan size if there is a shortfall.

Rental income must meet a minimum of 110% ICR of the pay rate of the chosen product to ensure it is a viable property. 

Surplus income can then be used to demonstrate the ability to meet any rental shortfall against the standard ICR. 

Customers can switch to top slicing after applying without the need for a new application, providing further options if properties suffer a down valuation.

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