Hinckley & Rugby Building Society has launched a buy-to-let (BTL) 5-year fixed rate at 4.99%, designed specifically for limited companies and allowing top slicing.
The maximum loan-to-value (LTV) is 70%, and the product has a completion fee of 5%.
The product was developed to provide a solution to affordability challenges faced by incorporated landlords in the current high-interest-rate environment.
With rental income often failing to meet minimum affordability criteria, particularly given recent economic pressures, Hinckley & Rugby’s top-slicing will allow landlords to use personal disposable income to bridge rental income shortfalls.
The society takes 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 Hinckley & Rugby, said: “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.”
