"Top slicing is a flexible tool that helps incorporated landlords overcome the affordability hurdles presented by today’s challenging buy-to-let market."
- Laura Sneddon, head of mortgage sales at Hinckley & Rugby
Hinckley & Rugby Building Society has launched a five-year fixed rate buy-to-let product at 4.99%, designed specifically for limited companies and allowing top slicing.
The product is available up to 70% LTV with a 5% completion fee.
The Society says its product offers a solution to affordability challenges faced by incorporated landlords in the current high interest rate environment.
With rental income often failing to meet minimum affordability criteria, Hinckley & Rugby’s top slicing allows landlords to use personal disposable income to bridge any rental income shortfalls.
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 mortgage affordability requirements.
Laura Sneddon, head of mortgage sales at Hinckley & Rugby, commented: “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.”
