HSBC (HSBC) has launched its top-tier slice along with the purchase of mortgages.
The bank said the move allows borrowers’ personal income to supplement rental income in an affordability assessment, “unlocking greater borrowing potential, especially in lower-year regions.”
Landlords with rental income less than interest coverage for property may be able to bridge the gap with the remaining personal income.
It provides an example of how new lending rules can improve lending.
A landlord who wants to borrow £225,000 on a 75% loan to buy a BTL property, the lender said.
Monthly rental income is £1,200, and only the property’s rental capital affordability can be used only, up to £186,000, but from today on through the landlord’s personal income they can borrow the entire amount of £225,000, up 20%.
“We are committed to supporting our clients by providing solutions for the residential and BTL mortgage markets,” said Oli O’Donoghue, head of mortgage at HSBC.
“Putting the top slice into our BTL mortgage series is a key example designed to make BTL mortgages easier to access while ensuring affordability remains at our core.
“Many landlords, especially in London and the Southeast, have high incomes but are limited by income-driven restrictions.
“By increasing the amount that can be borrowed through top slicing, we will enable more landlords to realize their property investment ambitions, due to the greater lending capacity provided.”
