Hinckley & Rugby Building Society has announced the launch of its new online Buy to Let calculator for introducers and is now assessing like-for-like BTL remortgages using a lower reference rate.
The lowered reference rates on pound-for-pound remortgages will see applications assessed using a ratio of 140 per cent at pay rate plus 2.5 per cent, whereas purchases and remortgages which include capital raising see rental income assessed using 145 per cent at 5.5 per cent.
Hinckley & Rugby’s BTL interest rates start at 1.69 per cent for a 75 per cent LTV two-year discount mortgage. The Society’s range of BTL products also includes a five-year fix and a lifetime discount.
Hinckley & Rugby head of intermediary sales Carolyn Thornley-Yates said: “Assessing like-for-like remortgages with the lower reference rate is designed to be helpful to landlords with lower rental yields and those feeling imprisoned on other lenders’ SVRs.
This new arrangement is just one of the many ways we help with affordability for landlords in the current market. One example is top slicing where we accept personal income to cover rental shortfalls.
Another initiative is joint borrower/sole proprietor arrangements for another borrower to join in a mortgage for income purposes without assuming ownership of the property on the title deeds.”
The new BTL calculator – at hrbs.co.uk/introducers/btl-calculator/ – works out the maximum loan based solely on rental income and also on a combination of rental and personal income.
Carolyn said: “This quick to access and quick to use calculator’s personal affordability check has been created for cases which are not self-supporting purely on rental income. We are constantly asking intermediaries what tools they need and this has been created for them.”