Hinckley & Rugby Building Society has launched an online buy-to-let (BTL) calculator for landlords and lower reference rates for like-for-like BTL remortgage assessments.
Applications will now be assessed with lowered reference rates on pound-for-pound remortgages using a ratio of 140% at pay rate plus 2.5%, while remortgages which include capital raising will have rental income assessed using 145% at 5.5%.
A 75% LTV two-year discount mortgage has BTL interest rates starting at 1.69%. The Society’s BTL product range also includes a lifetime discount and a five-year fix.
Carolyn Thornley-Yates, head of intermediary sales at Hinckley & Rugby, commented: “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.”
“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,” she added.
This change comes in line with other ways the Society aims to help landlords with affordability in the current market. This includes top-slicing – where the Society accepts personal income to protect against rental shortfalls.
The BTL calculator uses a combination of rental and personal income to determine the maximum loan.
Thornley-Yates said the calculator’s personal affordability check is easily accessible and 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,” she said.
For full details on the calculator and reference rates, you can visit the Hinckley & Rugby website.