Post Office Money is the latest lender to start accepting buy-to-let top-slicing.
Mortgage lenders typically use the rental income to calculate the maximum buy-to-let loan size, but top-slicing is designed to help landlords cover any rent shortfall by using personal income to access more generous loan sizes.
Aaron Strutt, product director at Trinity Financial, says: “The Post Office is offering some competitively priced fixed-rate mortgages and interest-only. The arrangement fees tend to vary between £0 and £995, and there is a free property valuation.”
A maximum of four applicants can be accepted on the mortgage, and all of them must live at the same residential address. The minimum household income to qualify is £40,000, and the minimum property value is £100,000
Applicants can choose to only use the rental income from their property to calculate their loan amount because the Post Office does not have a minimum income requirement for qualify for its standard buy-to-let mortgages.
The rental income must be at least 125% of the monthly interest due, inclusive of any product fees added to the loan. This is calculated at an interest rate of 5.5%. Click here to use our buy-to-let calculator.
Bank of Ireland funds Post Office Money for Intermediaries.
Call Trinity Financial on 020 7016 0790 to secure a buy-to-let mortgage