BTL Top Slicing Guidance

As a lender, for us to be able to accept your application we have to get the calculation of the rental income to pass what’s known as the ICR which stands for interest coverage ratio.

The ICR is an industry standard that uses a stressed interest rate on the rental income you charge.

The reason we use this stressed rate is to cover potential arrears, missed payments, management costs or any void payments.

As your rental income does not meet that calculation, I will run through the affordability assessment to ensure the mortgage will be affordable based on the rental income & using your personal income.