Using the Buy to Let Calculator

Enter the number of applicants and any other adults who are financially dependent upon the applicants. All applicants must live at the same residential address and at least one must be a homeowner.

Enter the number of children under the age of 18. Exclude any children who do not live with the applicants.

The minimum household income for a Top Slicing mortgage is £40,000

Employed client:

• Include their annual gross basic salary including any occupational pension (the amount before tax and national insurance deductions)
• We accept 50% of regular additional (non-guaranteed) income such as; overtime, commission and annual or bi-annual bonuses
• Our underwriters may reduce the amount of reliance on this income at their discretion.

Self employed client:

• Your client’s business must have been trading for a minimum of three years
• We’ll assess the last two years’ income and will take an average of the last two years’ SA302’s. If the SA302’s show a decline in income we’ll use the lowest latest year’s figure in isolation
• For directors with a 25% or greater shareholding we’ll use the latest year’s director’s salary, plus an average of the last 2 years’ dividends.

Retirement:

• If your client’s retirement is less than 10 years away, and the requested term will extend into retirement, include either their anticipated retirement income or their current income if lower.

If your client also receives:

• Child maintenance - include the annual amount received. The associated children should be entered in the ‘Number of children’ field as financial dependants. Child maintenance cannot be the only form of income on an application
• Foster income - average their last two years' earned UK taxable income, or use their most recent year's income if it’s lower than the average. Foster children must be included in the ‘Number of children’ field as financial dependants.

Enter the total amount (combined for joint applicants) your client will continue to pay each month for committed outgoings.

Include:

• Car finance and personal loans
• Student loans
• Any loans or credit where your client is acting as a guarantor
• Second or subsequent charges secured on your client's property
• Hire purchase commitments
• Overdraft interest calculated at 2% of the current overdraft balance
• Credit card/store card/catalogue debts calculated at 3% of the current outstanding balance
• Childcare costs/child maintenance/alimony
• School fees
• Interest costs on any non Buy to Let mortgages your client holds, calculated at 8.84% of the approximate balance at completion. Please don’t include their current residential mortgage.

Exclude:

• Living expenses (e.g. food, utility bills, clothes, petrol)
• Subscriptions to leisure activities (e.g. gym or golf club membership)
• Ground rent, lease payments or maintenance for other properties
• Pension contributions
• Commitments, payments or rent that will cease if this mortgage completes
• Monthly payments for other mortgages, even if they will continue after completion.

If applicant 1 or 2 has an outstanding residential mortgage, please enter the outstanding balance and monthly repayment.

We need to make sure any Buy to Let borrowing is self financing. If it isn’t, any shortfall will be classified as an outgoing.

• Enter the balance of all Buy to Let mortgages excluding this application. This must include any that are in joint names, and all applications in progress
• Include any that are in the name of a limited company which your client is a director of.

• Enter the rental income achieved for all Buy to Let properties, excluding this application
• Please don't include any rental income already accounted for in your client’s annual income.