To work with lending stress tests, Newbury Building Society has launched a buy-to-let (BTL) affordability calculator which takes top-slicing into account.
The Society aims to boost the amount an applicant can borrow by considering other incomes to support the application (referred to as top-slicing) as well as using rental coverage of 135% at an interest rate of 5.5% – down from 5.99%.
“Our buy-to-let calculator quickly informs the broker if their client is suitable or not,” Roger Knight, lending manager at Newbury Building Society, commented.
“We do this by considering the borrower’s overall finances, including income and expenditure,” he added.
“If we’re comfortable with sufficient surplus income, we will use this to tip up the rental calculation in order to increase the amount that can be borrowed.”
The standard BTL calculation will help with any regulated consumer, expat and limited company application.