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Hinckley & Rugby eases BTL stress test for remortgages

Hinckley & Rugby Building Society has announced that it is now assessing like-for-like buy-to-let remortgages using a lower reference rate and has introduced a new online calculator for intermediaries.

The lowered reference rates on pound-for-pound remortgages will see applications assessed using a ratio of 140% at pay rate plus 2.5%, whereas acquisitions and remortgages which include capital raising see rental income assessed using 145% at 5.5%.

Hinckley & Rugby’s buy-to-let interest rate starts at 1.69% for a 75% loan-to-value (LTV) two-year discount mortgage.


The Society’s range of buy-to-let products also includes a five-year fix and a lifetime discount.

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.

“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.”

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