Gatehouse Bank has announced a significant change for expats and international residents seeking to invest in buy-to-let properties. This reintroduction of top-slicing allows applicants to use personal income to meet mortgage requirements when rental income falls short.
- The minimum qualifying income for this programme is £32,000 for expats and £100,000 for international residents.
- Both expats and residents are consolidated under a single Finance Service Coverage Ratio (FSCR) band of 115%, though a 125% rate applies to international residents alone.
- These changes align with earlier adjustments made for UK residents, offering a Shariah-compliant option.
- John Mace, Gatehouse Bank’s senior product manager, underscores this as a natural progression to meet customer needs for more diverse financial solutions.
Gatehouse Bank has made a strategic move to reintroduce top-slicing for expats and international residents interested in buying-to-let properties. This financial mechanism, which permits the applicant’s personal income to supplement inadequate rental income, is back on the table, aiming to provide more accessibility and flexibility for property investors residing outside the UK. The bank initially reinstated this facility for UK residents earlier this year, marking its broad application now.
The regulatory requirements to benefit from this scheme stipulate that expats must have a minimum annual income of £32,000, while international residents need a considerably higher threshold of £100,000. This pivotal change aims to categorise both expats and residents under a unified Finance Service Coverage Ratio (FSCR) of 115%. Notably, international residents will face a higher rate of 125%, reflecting additional risk considerations.
According to John Mace, the senior product manager at Gatehouse Bank, this development is not merely coincidental but a definitive strategy aimed at broadening the scope of Shariah-compliant buy-to-let products. Mace pointed out, ‘Today’s announcement is a natural next step for Gatehouse Bank, following the same changes being reintroduced for UK residents earlier this year.’ This statement reflects the bank’s commitment to adapting and expanding its financial offerings in alignment with evolving market needs.
In context, top-slicing becomes a crucial tool that aligns with the bank’s overarching aim to provide diverse solutions to accommodate different investor profiles and financial scenarios. By reintroducing this feature, Gatehouse Bank is positioning itself as a forward-thinking entity catering to the nuanced needs of modern-day investors.
This strategic reintroduction reinforces Gatehouse Bank’s commitment to providing flexible and inclusive financial solutions for a global clientele.
