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Top-slicing and Let-to-Buy | Exploring Untapped Opportunities for Lenders | Mortgage Solutions

Top-slicing and Let-to-Buy

Top-slicing and let-to-buy

Retention, top-slicing, let-to-buy, and innovative construction techniques are key areas where brokers encourage lenders to address gaps in the buy-to-let market. A recent industry video by Mortgage Solutions discussion on Top-slicing and Let-to-Buy that delved into the market’s evolving landscape brought these insights to light.

Additionally, participants emphasised the need for lenders to adopt progressive strategies and explore novel avenues to meet the dynamic demands of the real estate sector.

The discourse underscored the importance of staying ahead of the curve and embracing contemporary approaches to ensure the continued growth and adaptability of the buy-to-let market.

Accord Mortgages has sponsored this video.


During the discussion, backed by support from Accord Mortgages, Liz Syms, the proprietor of Connect Mortgages and network and Connect for Intermediaries, delved into the complexities of the buy-to-let (BTL) market. Despite the diversity of products available in the BTL space, Syms highlighted unexplored product gaps.

One area of concern she raised was the retention in the BTL sector. While certain refurbishment products allow for a bridge first, followed by a refinance onto a term, the market currently offers fewer products compared to historical trends. Specifically, a shortage of products permits a term from day one on a property requiring refurbishment while incorporating retention for the associated costs. Top-slicing and Let-to-Buy

Liz Syms
Liz Syms, CEO and Founder of Connect

Syms proposed that if a lender could introduce a product featuring retention, clients would have a guaranteed exit without incurring the expense of a bridge loan. Moreover, she emphasised the availability of financing for modern construction methods (MMC) from developers. Still, she lamented the absence of a corresponding presence in the mainstream mortgage sector despite the growing significance of the green agenda.

Greg Cunnington
Greg Cunnington, chief operating officer at LDNFinance

Greg Cunnington, the Chief Operating Officer at LDNFinance, acknowledged that Accord made positive changes in its interest coverage ratio, which would enhance affordability. While acknowledging the effectiveness of top-slicing by Clydesdale and Barclays, Cunnington stressed the need for more lenders to adopt a pure top-slicing model.

He suggested that lenders could differentiate themselves by offering unique products, citing an example of an emerging trend: let to buys for those seeking a chain-free experience, with the added incentive of a stamp duty refund if the property is sold within the first three years.

This discussion marks the inaugural instalment of a four-part buy-to-let debate series featuring notable panellists such as Jeremy Duncombe, Managing Director at Accord Mortgages, Liz Syms, owner of Connect Mortgages and network, Connect for Intermediaries, and Greg Cunnington, Chief Operating Officer at LDNFinance.

The series, hosted by Victoria Hartley, Group Editor at Mortgage Solutions, aims to provide comprehensive insights into the evolving landscape of the buy-to-let market. The eagerly anticipated second part of the series is scheduled to be broadcast on Wednesday, May 25th.

Credits to Mortgage Solutions:  “Top-slicing and Let-to-Buy | Exploring Untapped Opportunities for Lenders.” Until next time, stay Connected!

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