Hinckley & Rugby Building Society has introduced a new buy-to-let mortgage at a fixed rate of 4.99%. The product is tailored for limited companies and incorporates a top slicing option, facilitating better affordability for landlords.
- Landlords can now access a 70% loan-to-value (LTV) mortgage with a 5% completion fee, easing financial constraints.
- Amid high-interest rates, this product offers a solution for incorporated landlords, addressing the affordability challenges they face.
- By utilising top slicing, landlords are enabled to use personal income to supplement rental income shortfalls.
- This strategy considers a landlord’s comprehensive financial picture, enhancing the ability to meet mortgage requirements.
Hinckley & Rugby Building Society has unveiled a new buy-to-let product, specifically targeting limited companies with a fixed interest rate of 4.99%. This development is poised to assist landlords in managing the financial pressures of the current high-interest environment.
The mortgage offers a 70% loan-to-value (LTV) ratio and includes a 5% completion fee, designed to accommodate landlords seeking an economical solution. With the rise in interest rates, many landlords experience rental income below the minimum affordability threshold. This product leverages a top slicing approach, allowing landlords to use their disposable personal income to cover any gaps in rental income, thereby meeting the necessary mortgage affordability requirements.
The top slicing feature not only enables them to bridge the income gap but also allows for a comprehensive review of a landlord’s total earnings. This review includes additional earnings from other properties, investments, and business interests, ensuring all income streams are considered when analysing mortgage affordability. This ensures a more balanced and secure financial position for both the borrower and the lender.
Laura Sneddon, Head of Mortgage Sales at Hinckley & Rugby, commented on the product, stating, ‘Top-slicing is a flexible tool that helps incorporated landlords overcome the affordability hurdles presented by today’s challenging buy-to-let market. By factoring in a landlord’s overall income, we are providing a cushion that supports both the borrower and lender in feeling secure about the mortgage.’
This innovative approach by Hinckley & Rugby provides landlords with a strategic tool to address the affordability issues they face in the challenging buy-to-let market.
