top slice mortgage BTL - can someone explain?

Saint84

Hi all
I am looking at a BTL @ 25% deposit. And the best mortgage rate I have been offered by the broker over 5 years is 2.07%... but its called a top slicing BTL mortgage.
does anyone know what a Top Slicing BTL is? the broker says i could only get this as other lenders won't lend the 75% amount otherwise.
any advice or watch outs would be appreciated

LRmortgage

Makes no difference to you. 

The rental income doesn’t support the lending required to 75% LTV so the broker is going to use some of your other income towards meeting the lenders affordability requirements. 

Saint84

Thank you. That's a relief. 

On that basis, is 2.07 percent with 1495 fee reasonable deal. It's with Platform.

[Deleted User]

Top sliced mortgages are useful for certain situations but they do raise a flag to say that the rental income being received isnt as good as the lender wants.    If you are in a area with high capital growth then that will offset it but if you are relying on the rental income as the way to make money then there will be better investments out there