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Hinckley and Rugby to launch portfolio buy-to-let mortgages

  • 28/06/2018
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Hinckley and Rugby to launch portfolio buy-to-let mortgages
Hinckley and Rugby Building Society is to start lending to buy-to-let portfolio landlords.


The society will offer the deals from July 2 and its definition of portfolio is an investor with four or more mortgaged buy-to-let properties.

The homes can be properties owned within a limited company if the applicant has more than 25% of the shares, properties held on a consent to let basis or holiday lets.

For joint applications, if the combined number of qualifying properties exceeds three then the application will also be classed as portfolio lending.

As part of Hinckley and Rugby’s criteria, the Interest Coverage Ratio (ICR) of the property and portfolio as a whole must be at least 145%.

The maximum number of properties in a portfolio is 10 and the maximum loan to value of the portfolio is 70%.

And at least one applicant must have at least 24 months experience as a landlord.

The lender is also introducing a quick-check calculator for advisers on its website.

All standard buy-to-let products will made available to portfolio landlords and include a two-year discount at various LTVs, a lifetime discount and a five-year fixed rate.

However, a ‘top sliced’ combination of rental income and personal income is not available for portfolio landlords.

Hinckley & Rugby head of sales and marketing Carolyn Thornley-Yates said: “Because we are a manual lender, we can look at all the elements of a buy-to-let portfolio application.

“Each case will be assessed individually, enabling everyone to have confidence in its affordability.

“The calculator looks at the subject property, the portfolio as a whole, the level of experience and the rate at which the portfolio has grown. We will work closely with intermediaries to ensure their landlord clients achieve sustainable funding.”

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