Specialist lender Precise Mortgages has relaunched its buy-to-let top slicing product.

Top slicing allows landlords to use surplus portfolio, or earned disposable income, to prove they can meet the financial stresses of a new loan application, rather than through the rental income of the property alone.

The product is available across the Wolverhampton firm’s entire BTL range, as well as on all eligible personal ownership, limited company, portfolio and house in multiple occupation applications.

Options include two- or five-year fixed rate products, with rates from 2.79% and a loan to value of up to 75%.

Loan sizes range from £75,000 up to £3m, with no minimum income requirements for loans under £1m.

Rental income must meet a minimum of 110% interest cover ratio of the pay rate of the chosen product to ensure it is a viable property. Surplus income can then be used to demonstrate the ability to meet any rental shortfall against the standard ICR.

The firm says landlords can switch to a top slicing product even after applying for a loan without the need for a new application.

Precise Mortgages group sales director Adrian Moloney says: “Top slicing allows landlords greater choice in the way they manage their properties and could help them to optimise their investment opportunities. We’re reintroducing a wider choice of products by unlocking access to our two-year fixed rate, as well as our five-year fixed-rate mortgage products.

“These products could be particularly useful for those who may have been restricted from investment opportunities, as well as helping landlords achieve greater flexibility around loan size.”

The firm adds its product is not available to first-time buyers and applicants in receipt of furlough income or self-employment income support scheme payments.