Buy to let lender BM Solutions has announced the launch of top slicing on mortgage applications. This enables investor borrowers to use a proportion of their earned income when the rental income for the buy-to-let property is not sufficient to hit a lender’s standard rental cover ratio calculation.

BM’s top slicing will require a minimum income of £100,000 per application, with PAYE, self-employment, pensions and profit from UK land and property all accepted.

BM is part of the Lloyd Banking Group, and the minimum stressed rental cover ratio calculation is 125% and the maximum is 145% - and the initiative is being seen as great news for property investment.

Riz Malik, founder and director at R3 Mortgages, said: “BM Solutions should be commended for broadening its criteria to aid more buy-to-let borrowers…top slicing can indeed be a game-changer in buy-to-let applications, especially considering the current stress tests.”