Hinckley & Rugby for Intermediaries updates Income Flex and residential criteria

04 October 2024

Hinckley & Rugby for Intermediaries has announced significant improvements to its Income Flex product criteria, providing more flexible lending options for borrowers with non-standard income sources.

Additionally, the Society has introduced changes to its Residential criteria concerning builder deposits.

The changes have been made in response to evolving market conditions, allowing the society to meet growing customer demand and improve affordability for borrowers with varied income sources.

Income Flex Criteria Updates

The improvements to the Income Flex criteria include:
• Agency Workers: Maximum loan-to-value (LTV) increased from 75% to 80%, enhancing opportunities for those employed in temporary roles.
• Day Rate Contractors: Minimum income requirement removed.A minimum contract term of three months is still required.
• Zero-Hour Contractors: The LTV has increased from 75% to 80%, offering more borrowing capacity for workers with irregular hours.
• Stipend Income: Hinckley & Rugby will now accept 100% of stipend income with 12 months’ evidence and will consider loans with LTVs of up to 80% where stipend income is the primary source.
• Tronc Payments (Tips): Responding to industry trends, the Society will now accept up to 100% of tips as income, provided there is a minimum of 12 months’ evidence of payments.
• Lodger Income: Lodger income can now be fully utilised, up to the government’s tax-free threshold of £7,500 per annum, with the primary income required to exceed this amount.

Residential Criteria: Builder Deposits

Alongside the Income Flex improvements, Hinckley & Rugby has also updated its Residential criteria for builder deposits.

Where the builder provides a deposit of up to 5% of the property’s value, the purchase price will now remain unchanged for LTV purposes. For deposits over 5%, the Society will reduce the purchase price accordingly.

These changes demonstrate Hinckley & Rugby’s ongoing commitment to flexible lending solutions, delivering for a wider group of borrowers irrespective of their income streams or deposit sources.

Chris Holmes, Senior Product & Proposition Manager at Hinckley & Rugby, commented:

“Our latest updates to the Income Flex and Residential products reflect our desire to support borrowers who may not fit the typical income profile. Whether it’s accepting tips as part of income or increasing the LTV for zero-hour contractors, we’re making sure our criteria are flexible enough to accommodate the modern workforce.

“With the changes to builder deposits, we’re also simplifying processes for new-build buyers, ensuring greater clarity and ease of access to higher LTV options.

“At Hinckley & Rugby, we understand that a single approach to lending does not reflect the diverse circumstances of today’s borrowers. While many lenders require applicants to fit specific criteria, our Flex product range is tailored to accommodate the unique financial circumstances of each individual. Our goal is to meet the evolving needs of the market by offering competitively priced mortgage solutions and flexible underwriting, ensuring our broker partners and their clients receive the most suitable support.”