Suffolk Building Society has made affordability criteria changes for expats and landlords.

The society has introduced top slicing on its UK buy-to-let (BTL) and expat BTL mortgages. It has also changed the way it assesses affordability for expat residential applicants living in seven tax-free countries.

It sets its interest coverage ratio (ICR) at 125% for basic tax payers and 145% for higher and additional rate tax payers.

The changes mean, it can now top slice when assessing affordability across its two-year products on UK and expat BTL.

Where the rental income falls short, the society will use some of the borrower’s personal disposable income to provide a top-up, where the rental income meets a minimum ICR of 125% at product rate.

Under the changes, the society allows a maximum of two applicants with a minimum £40,000 income requirement for one applicant, or a combined income of £65,000 per application.

Suffolk Building Society head of intermediaries Charlotte Grimshaw says: “The BTL market has evolved significantly, and many landlords now have diverse income streams in addition to rental.”

“Our new top slicing proposition recognises this reality by allowing surplus personal income to be considered in affordability assessments. This provides greater flexibility for landlords who may otherwise be constrained by rental stress testing alone, whilst maintaining our responsible approach to lending.”