The new product aims to tackle affordability challenges faced by incorporated landlords in the current high-interest-rate environment and features a rate of 4.99% fixed for 5 years with a maximum LTV of 70% and a 5% completion fee.
With rental income often failing to meet minimum affordability criteria, particularly given recent economic pressures, Hinckley & Rugby’s top-slicing allows landlords to use personal disposable income to bridge any rental income shortfalls, providing a practical and innovative solution.
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.
Laura Sneddon, Head of Mortgage Sales at Hinckley & Rugby, explained: “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.”
