A new buy-to-let affordability calculator, which works with the new stress rate of 5.5% and takes top-slicing into account, has been launched by Newbury Building Society.
The Society’s standard BTL calculation uses rental coverage of 135% at an interest rate of 5.5% - down from 5.99% - and can also consider other income to support the application, referred to as top-slicing.
Roger Knight, lending manager at Newbury Building Society, commented: “Our buy-to-let calculator quickly informs the broker if their client is suitable or not.
“It will also help with top-slicing calculations for not only standard buy-to-let, but can also help with any regulated, consumer, ex-pat and limited company applications. This means that we will consider income from a day job rather than rent to boost the amount an applicant can borrow. We do this by considering the borrower’s overall finances, including income and expenditure. If we’re comfortable with sufficient surplus income, we will use this to top up the rental calculation in order to increase the amount that can be borrowed.”