The five-year fixed rate is available with top-slicing to support landlords with affordability challenges.
The mutual’s new buy-to-let five-year fixed rate is priced at 4.99%, and designed specifically for limited companies.
It is available up to 70% of the property’s value, and comes with a completion fee of 5% of the mortgage.
What is top-slicing?
With rental income often failing to meet minimum affordability criteria, top-slicing allows landlords to use personal disposable income to bridge any rental income shortfalls, providing a practical solution.
Hinckley & Rugby will take into account the landlord’s wider financial picture, including earnings from other properties, investments, and business interests—to ‘top up’ the rental income and meet the mortgage affordability requirements.
Laura Sneddon, head of mortgage sales at the building society, explained: “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.”
