Hinckley & Rugby loosens buy-to-let stress test for remortgage

Ryan Bembridge

October 27, 2017

Hinckley & Rugby Building Society has loosened buy-to-let stress tests for pound-for-pound remortgages to an income ratio of 140% at a pay rate plus 2.5%.

Purchases and remortgages with a capital raise see the assessment at 145% at 5.5%.

At the same time the society has launched an online buy-to-let calcualtor for introducers.

Carolyn Thornley-Yates, head of intermediary sales at Hinckley & Rugby, 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.”

Hinckley & Rugby’s buy-to-let interest rates start at 1.69% for a 75% LTV 2-year discount mortgage.

The society’s range of buy-to-let products also includes a 5-year fix and a lifetime discount.

Thornley-Yates added: “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.”

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