Gatehouse Bank has reintroduced its top-slicing option for expatriates and international residents seeking to invest in buy-to-let properties.
- Top-slicing allows mortgage applicants to supplement rental income with personal earnings to meet financial requirements.
- This reintroduction follows a similar move earlier this year for UK residents, enhancing options for Shariah-compliant financing.
- A minimum income of £32,000 for expats and £100,000 for international residents is required to qualify.
- John Mace, a senior product manager at Gatehouse Bank, affirms this development expands financing choices.
Gatehouse Bank has reintroduced its top-slicing feature to accommodate expatriates and international residents aiming to purchase buy-to-let properties. This strategic move broadens the financial options for those seeking Shariah-compliant mortgage products. Top-slicing, a method where individuals can use their personal income to cover any shortfall in rental income, is now available again, having been initially introduced for UK residents in June.
The adaptability offered by top-slicing is particularly beneficial in situations where the rent, paid by tenants, fails to meet the monthly payment threshold set by the bank. This top-up capability ensures that applicants can qualify for the mortgage by utilising their personal income, providing greater leeway in financing arrangements.
To utilise this option, expatriates need a minimum annual income of £32,000, whereas international residents must earn at least £100,000 annually. Both categories, expats and international residents, are encompassed within a singular Finance Service Coverage Ratio (FSCR) banding set at 115%—a measure used to assess the financial viability of the loan. However, for international residents, a distinct 125% rate is applied, reflecting the tailored approach within Gatehouse Bank’s policy framework.
According to John Mace, the senior product manager at Gatehouse Bank, “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 underscores the bank’s commitment to facilitating diverse financial solutions that align with both market demands and clients’ needs.
The reintroduction of top-slicing by Gatehouse Bank marks a significant enhancement in financing options for expats and international residents in the buy-to-let property market.
