Hinckley & Rugby Building Society is launching a Buy to Let five-year fixed rate at 4.99%, designed specifically for limited companies allowing top slicing.
This product offers what the society calls “a unique solution to affordability challenges faced by incorporated landlords in the current high-interest-rate environment.”
The product is 4.99% fixed for five years, maximum loan-to-value of 70%, but with a 5% completion fee.
With rental income often failing to meet minimum affordability criteria, particularly given recent economic pressures, Hinckley & Rugby says its top-slicing allows landlords to use personal disposable income to bridge any 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.
A spokesperson says: “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.”
This article is taken from Landlord Today