Gatehouse Bank brings back top slicing for UK residents

It also updates its finance service coverage ratio bandings

Gatehouse Bank brings back top slicing for UK residents

Gatehouse Bank has reintroduced top slicing for UK residents purchasing buy-to-let properties.

Top slicing, also known as income top-up, allows applicants to use their personal income to cover the shortfall when the rent paid by the tenant does not meet the bank’s monthly payment requirements, subject to certain limits.

The challenger bank has also updated its finance service coverage ratio (FSCR) bandings.

Limited companies and basic rate taxpayers purchasing individual BTL properties or portfolios will have a 125% rate. Higher and additional rate taxpayers purchasing properties individually or as part of a portfolio, as well as those buying houses in multiple occupation (HMOs) or multi-unit freehold blocks (MUFBs), will have a 145% rate.

To qualify for top slicing, applicants must have a minimum annual income of £32,000 from at least one UK-based applicant. The FSCR bandings for top slicing will be 110% for limited companies and 115% for individuals.

“We continuously review our products and criteria to ensure that we are providing our customers with the most suitable outcomes for their needs,” said John Mace, senior product manager at Gatehouse Bank. “We have reintroduced top slicing to broaden our criteria and subsequently help more buy-to-let customers achieve their financial goals.”

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