Hinckley & Rugby increase buy to let mortgage ICR’s in 2017.

The interest cover ratios on Hinckley & Rugby’s buy to let mortgages will be increasing from 1st January 2017.

They currently stand at 135%, but the increase will see them rise to 145%.

New applications from that point will be stress tested, using the new figure of 5.5%, instead of pay rate plus 2%.

mortgage

The move is applicable to all H&R’s buy to let range except its 5 year fixed rate, which will be tested at 145% ICR at pay rate.

The mortgage rate for this loan is 2.75% for up to 60% loan to value.

H&R have said that the personal income of applicants that fail the new criteria would also be considered, as they feel that rental income isn’t the only factor in defining a good quality application.

Whether you are new to buy to let or a seasoned landlord with years of experience, the underwriting standards that different lenders adopt can feel bewildering. Make sure you receive the best advice by turning to our mortgage professionals at Deal Direct.

Please be aware that we regulated to offer independent mortgage advice but not general financial advice. Therefore, if you wish to discuss the suitability of property as a viable investment, Deal Direct urges you to contact an independent financial adviser. 

Please note: 

Buy to let mortgage applications from:

  • applicants whose intention is to benefit from house price growth
  • applicants whose intention is to benefit from rental income
  • applicants who are letting to buy

will be treated as a normal buy to let and not as a consumer buy to let. In addition, their subsequent remortgage applications will also be treated in the same manner.

For free, impartial and ‘whole of market’ advice on the latest rate reductions, contact Deal Direct.

Speak to us today on 0800 048 8828.    

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Article published: Friday, December 30, 2016
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