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Interest Cover Ratio (ICR) & Top Slicing Case Study
This is a great case study on how Liquid Expat Mortgages helped a UK expat living in Singapore by using top slicing to successfully secure them a new mortgage.
The scenario.
Mr. Andrew M is a UK expat living in Singapore. He already had several investment properties and wanted to expand his property portfolio by investing in a new London rental property.
A price to purchase the property had been agreed with the vendor, but the Buy To Let mortgage market was unpredictable and turbulent to say the least. This made it challenging to qualify for a traditional UK mortgage because he couldn’t meet the Interest Cover Ratio (ICR) in the traditional way. Liquid Expat Mortgages were able to introduce Andrew to a specialist lender. By working together we were able to deliver an innovative approach to ensuring Andrew could achieve his financing objectives.
Here’s how it worked.
Working with a specialist lender we utilised “top slicing” to factor in Andrew’s personal income to supplement rental income, ensuring he met the Interest Cover Ratio (ICR) requirements. By “expanding” borrowing capacity by considering the landlord’s overall financial situation he was able to secure a mortgage for his new London property. The top slicing factor was crucial as the property’s rental income alone didn’t meet the lender’s criteria
Interest Cover Ratio (ICR) & Top Slicing Solutions
Interest Cover Ratio (ICR) and Top Slicing are crucial for landlords and lenders alike as they ensure affordability, mitigate financial risk, meet lender requirements, and provide flexibility in volatile Buy To Let (BTL) mortgage market conditions.
If you would like to understand how ICR and Top Slicing can increase your maximum borrowing amount, please contact Liquid Expat Mortgages, and let us assist you with your Buy-to-Let Mortgage options.
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