"Five-year fixed-rates have been the default for many landlords for a reason, particularly from an affordability and rental coverage perspective, but that doesn't always reflect how clients are thinking in the current market"
- Laura Sneddon - Hinckley & Rugby
Hinckley & Rugby for Intermediaries has launched a new range of two-year discounted buy-to-let mortgage rates available up to 80% LTV, while also cutting the rate on its limited-company product, in a move designed to give brokers more options when placing landlord cases.
The new products are available immediately for purchase and remortgage, with buy-to-let mortgage rates starting from 4.99%. The lender says the range addresses a part of the market where product availability has historically been thin, particularly for landlords using limited-company structures.
Alongside the new range, Hinckley & Rugby has reduced its limited-company buy-to-let two-year discounted rate at 70% LTV by 0.4%, from 5.40% to 5%, with a £1,249 fee. The changes are intended to support brokers working with a broad range of landlord clients, including those seeking shorter-term flexibility during a period of interest rate uncertainty.
"Five-year fixed-rates have been the default for many landlords for a reason, particularly from an affordability and rental coverage perspective, but that doesn't always reflect how clients are thinking in the current market," said Laura Sneddon, head of mortgage sales and distribution at Hinckley & Rugby for Intermediaries (pictured).
"What we are seeing more often now is brokers weighing up that trade-off more carefully. While fixed-rates can work well from that point of view, not every landlord wants to lock in at today's pricing."
"That is especially the case in a market where the Bank of England has held the base rate and the direction of travel is still unclear. It leaves brokers and their clients trying to balance affordability with flexibility, rather than committing too early."
"That is where discounted products start to come back into the conversation. They are not always the easiest to place, but they can offer a level of flexibility that some clients are actively looking for."
"By introducing 80% LTV options and adjusting pricing across the range, we are giving brokers more scope to structure cases around those real conversations, rather than relying on a single approach."
