Hinckley and Rugby Building Society has updated its product and criteria, the details are below. These products are available through our direct to lender mortgage club so contact us for more information on how our club can support your business.
Ltd Company BTL affordability, solved with top-slicing
Higher rates and tighter affordability mean many limited company landlord applications are falling short on the interest coverage ratio (ICR), even when the client has strong finances elsewhere.
That’s where top-slicing can help.
Instead of relying on rental income alone, we can consider the client’s wider financial position, including surplus personal income, income from other properties and investment returns, to help bridge an affordability shortfall.
For the right client, this more considered approach could make the difference between a case that doesn’t quite fit and one that does.
How top-slicing works:
- If rental income doesn’t meet the stressed rate, we assess whether the shortfall can be covered by the borrower’s personal income.
- Available on our Buy-to-Let range (including Visas Buy-to-Let), for both Ltd Company and personal landlords.
- Available to portfolio landlords (four or more mortgaged rental properties).
- Rental income must meet a minimum ICR of 100%.
- Also available on Joint Borrower Sole Proprietor (JBSP) mortgages.