The Hinckley & Rugby Building Society has introduced a new online buy-to-let calculator for introducers.
It is also now assessing like-for-like buy-to-let remortgages using a lower reference rate.
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 purchases and remortgages which include capital raising see rental income assessed using 145% at 5.5%.
The Hinckley & Rugby’s buy-to-let interest rates start at 1.69% for a 75% LTV two-year discount mortgage.
Carolyn Thornley-Yates, the Hinckley & Rugby’s head of intermediary sales, said: “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.”
The new buy-to-let calculator works out the maximum loan based solely on rental income and also on a combination of rental and personal income.
Thornley-Yates said: “This quick to access and quick to use calculator’s personal affordability check has been created for cases which are not self-supporting purely on rental income. We are constantly asking intermediaries what tools they need and this has been created for them.”
