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Could top slicing help your portfolio landlords develop their buy to let business?


Jo – Underwriting consultant

Published 07.06.2019

There’s been a seismic shift in the makeup of the UK’s landlords in recent years.

Since 2010, the proportion of landlords with five or more properties has increased substantially from 5% to 17%1. The number of landlords with five or more properties now accounts for nearly 50% of the sector. In comparison, the number of landlords with a single property has dropped dramatically from 40% of all tenancies to just 21%.

While the reasons behind the sea change can be debated, what can’t be argued is that the market is becoming more professionalised and we’re seeing more landlords with multiple properties looking to either purchase a new property or remortgage some or all of their portfolio.

Research shows that one in three of these portfolio landlords expect to remortgage some of their properties in the next year2. With this in mind, I wanted to let you know that we’ve extended our newly enhanced top slicing proposition to include portfolio landlords.

Whether your customer has four mortgaged properties or 4003, we now allow them to use their surplus rental income to demonstrate they could meet any financial stresses on their application, rather than through the rental income of the property alone.

They can achieve this using:

  • the rental income of the property (the historical method)
  • rental income from their wider portfolio
  • personal earned disposable income
  • or a combination of the above

This is great news. Not only does it help to unlock our range of 2 year fixed rate buy to let mortgages, as well as our 5 year fixed rate products, it also gives customers flexibility around loan size and more choice with how they manage their portfolio. Furthermore, we don’t require any additional proof of income where surplus portfolio rental income is being used to support the loan; we’ll simply validate this with our automated valuation model (AVM) at no additional cost to your customer.

We’ve also streamlined the process and we’ll continue to do all of the heavy lifting for you, making it easier for you to place your applications. We’ve reduced the number of questions you have to provide answers for and enhanced our online buy to let calculator to identify how much surplus portfolio and/or earned income is required to achieve the loan size your customer needs to achieve if there is a shortfall.

To find out more about how top slicing could help your portfolio customers, our Top Slicing Frequently Asked Questions factsheet should answer any questions you might have.

If you’d prefer to speak with someone, contact our Sales Team or call our dedicated support team on 0800 116 4385.

Source: 1 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/775002/EPLS_main_report.pdf
2 BVA BDRC Landlords Panel report Q1 2019
3 Up to 20 buy to let mortgages to a combined value of £10 million with Precise Mortgages. Unlimited with other lenders.


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