Hinckley & Rugby launches top-slicing product; Fleet slashes rates on five-year fixes
Mortgage lenders are responding to a turbulent buy-to-let market with a range of pricing adjustments and innovative products aimed at addressing affordability challenges faced by landlords.
Hinckley & Rugby Building Society has introduced a five-year fixed rate buy-to-let mortgage at 4.99%, specifically designed for limited company landlords. The product allows top-slicing, enabling borrowers to use personal disposable income to supplement rental income shortfalls, a significant issue in the current high-interest rate environment.
With a maximum loan-to-value (LTV) of 70% and a 5% completion fee, the offering aims to ease affordability hurdles by factoring in a landlord’s broader financial circumstances, including other income sources such as investments and business interests.
“Top-slicing is a flexible tool that helps incorporated landlords overcome the affordability hurdles presented by today’s challenging buy-to-let market,” said Laura Sneddon (pictured left), head of mortgage sales at Hinckley & Rugby Building Society. “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.”
Meanwhile, specialist lender Fleet Mortgages has cut rates on several of its five-year fixed rate products by 15 basis points (bps). The reductions apply to standard, limited company, and house in multiple occupation (HMO) and multi-unit block (MUB) products at 75% LTV with a 3% fee.
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The new rates are 5.14%, down from 5.29%, for standard and limited company products, and 5.54%, reduced from 5.69%, for HMO/MUB offerings.
“The rate environment over the last few weeks, particularly in the swap markets, has been fairly turbulent,” commented Steve Cox (pictured centre), chief commercial officer at Fleet Mortgages. “However, given the way we are funded, Fleet is able to move product pricing even when the wider buy-to-let market might be going in the other direction. We’ve been able to do that with these new cuts to our specific five-year fixes which come with a 3% fee, bringing them down by a significant 15 basis points.”
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