Combine income sources to increase your Buy To Let budget
With a top slicing mortgage you can boost your affordability by counting personal income as well as rental income towards mortgage calculations. Create a free Tembo plan today to see what you could be offered.
Top slicing is when a mortgage lender factors in a borrower's personal income alongside rental income from a Buy to Let property to secure the loan.
Before you apply for a top slicing mortgage, it’s worth seeking expert advice from a trusted mortgage advisor, like Tembo. We specialise in helping buyers and remortgagers find ways to boost their mortgage affordability, so they can buy sooner or remortgage onto a new deal.
When assessing rental income, lenders usually want Buy to Let properties to have an interest coverage ratio of 125%, meaning that the monthly rental payments should be 25% higher than the monthly repayments for the Buy to Let loan. If the rental income isn’t enough to cover the repayments, top slicing could be the answer. It works by supplementing the rental income from your Buy to Let property with your personal income to make up the affordability shortfall.