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Hinckley and Rugby BS tweaks BTL reference rate
Hinckley and Rugby Building Society is a now assessing like-for-like buy-to-let (BTL) remortgages using a lower reference rate.
The mutual has also added a new buy-to-let calculator for brokers on its website for cases which are not self-supporting purely on rental income.
It will calculate the maximum loan based solely on rental income or on a combination of rental and personal income.
The lowered reference rates on pound-for-pound remortgages will see applications assessed using a ratio of 140% at pay rate plus 2.5%. In contrast, purchases and remortgages which include capital raising see rental income assessed using 145% at 5.5%.
Remortgage prisoners
Hinckley and Rugby head of intermediary sales Carolyn Thornley-Yates (pictured) 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’ standard variable rates.
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“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,” she added.