Hinckley & Rugby Building Society launches Buy-to-Let for Limited Companies 5-year fixed rate with top slicing

20 November 2024

Hinckley & Rugby Building Society announce the launch of a Buy-to-Let (BTL) 5-year fixed rate at 4.99%, designed specifically for limited companies allowing top slicing.

This product offers a unique solution to affordability challenges faced by incorporated landlords in the current high-interest-rate environment.

The product is as follows:

• 4.99% Fixed for 5 years
• Maximum loan-to-value (LTV): 70%
• Completion fee: 5%

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.”