BM Solutions now using earned income plus rent to issue more generous buy-to-let mortgages

by Aaron Strutt

Sep 05 2023

BM Solutions has announced it will accept income from higher earners to boost the amount they can borrow with buy-to-let mortgages.

The industry term for using earned income and rent when accessing a buy-to-let mortgage is 'top slicing'. It enables customers with a shortfall in their required lending to use a proportion of their earned income when the rental income for the buy-to-let property is insufficient to hit the lender's standard rental cover ratio calculations.

Joint mortgage applicants will need to have a combined income of £100,000 to qualify for the enhanced borrowing criteria with BM Solutions. A full affordability assessment will also automatically be carried out as part of an application to ensure that it meets BM Solutions' minimum 'top slicing' requirements.

Top slicing criteria with BM Solutions

• Portfolio landlords excluded
• Let to buy excluded
• Minimum income £100,000 (First two applicants)

 Income included for buy-to-let mortgage affordability with BM Solutions

• PAYE
• Self-employment
• Pension
• Profit from UK land and Property

If a customer is within six years of retirement age (anticipated or aged 70 whichever is earliest) at the time of application, BM Solutions will only consider lending on a top-slicing basis if they are currently in receipt of an acceptable pension income or they are a joint applicant and the other applicant has sufficient income and is not within six years of retirement.

Income included in the income and expenditure affordability assessment:

• PAYE – basic income, commission, bonuses, and overtime
• Self-employment
• Pension

Income excluded from affordability assessment:

• Other income
• Profit from UK land and property
• Benefits

Financial commitments BM Solutions wants to know about when working out the maximum buy-to-let loan size 

• Residential mortgages
• Any loans, credit cards, HP, etc
• Financial dependents
• School fees
• Childcare costs

Does top-slicing really help raise more money with a buy-to-let mortgage? 

There is a range of banks and building societies already offering top-scoring criteria in the mortgage industry although BM Solutions consistently offers competitively priced rates.

Top-slicing consistently helps borrowers to raise more funds as part of the mortgage application.  Most lenders do not have minimum income requirements of £100,000.

What is happening in the buy-to-let mortgage market?

Aaron Strutt, product director at Trinity Financial, says: "The high mortgage rates, increased regulation and higher taxes have severely hit the buy-to-let market. The number of new buy-to-let purchases, particularly in London and the south-east has dropped significantly.

"Many landlords have decided to sell up because the rental income is insufficient to cover the mortgage costs, and this, in turn, is putting increased pressure on the rental market with higher rental and fewer properties to choose from."

BM Solutions is the largest buy-to-let lender, and it is doing more to attract wealthy landlords looking to purchase a property or remortgage. BM Solutions was previously known as Birmingham Midshires.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change.

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