| Property | Three-bedroom terraced house |
|---|---|
| Location | Levenshulme, Manchester |
| Client | Higher-rate taxpaying landlord with one rental property held personally |
| Product | Buy-to-let mortgages |
The challenge
The landlord's fixed rate was ending. Because he is a higher-rate taxpayer, most lenders applied a tougher rental stress test, and the rent alone fell short of the amount needed to keep the existing loan.
What we did
We identified lenders that use 'top-slicing', where surplus personal income can support a small rental shortfall. We gathered his payslips and tax calculations to evidence the surplus. We compared this route with a product transfer from his existing lender, which needed no new affordability check but offered fewer options. On balance the remortgage suited his plans better.
The outcome
He moved onto a new fixed rate before the old deal ended, avoiding his lender's standard variable rate.
Buy-to-let mortgagesMortgages for landlords buying or remortgaging rental property, in personal names, across the UK.
Learn moreImportant: Most buy-to-let mortgages are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments, and a receiver of rent may be appointed.