We may be able to use surplus personal income (top slicing) to cover a rental shortfall when we assess affordability for a BTL loan. 

In order for your application to qualify for top slicing the following criteria should be met: 

• Where surplus earned income is being used to cover any rental shortfall (Top Slicing) customers must reside at the same address. 
• For single and joint applicants, the minimum income (not from rental properties) is £50,000.
• The interest coverage ratio based on rental income only must be greater than or equal to 100% and less than the minimum required ICR threshold for the application as set out in this policy 
• Maximum LTV of 75%

Top slicing is not allowed in these cases:

• Lending to first time landlords (For an application to be classed as a First Time Landlord, all applicants, at the time of application, do not own a property that they have let out for more than 12 months)
• Lending where the security is a new build property
• Let To Buy applications
• Capital raising for unsecured debt consolidation or to cover other personal expenditure (e.g. Car Purchase, Holiday, School fees, Gift to relative).

To see a breakdown of the types of income we accept and the evidence required, please see our income and top slicing criteria page.