A new range of buy-to-let two-year discounted products available up to 80% LTV, has been launched by Hinckley & Rugby for Intermediaries. Targeted at landlord borrowers seeking to purchase or refinance, rates for the new range of two-year discounted products start from 4.99%.
Meanwhile, it has also cut the rate for its existing limited company buy-to-let two-year discounted product at 70% LTV, down from 5.40% to 5%. It comes with a £1,249 fee.
An area of the market historically more limited
Hinckley & Rugby said the introduction of these higher LTV options and the rate cut would provide brokers with access to mortgage solutions in a part of the market where product choice has historically been more limited, particularly for landlords operating through limited-company structures.
sales and distribution at Hinckley & Rugby
Laura Sneddon, head of mortgage sales and distribution at Hinckley & Rugby for Intermediaries, said: “Five-year fixed-rates have been the default for many landlords for a reason, particularly from an affordability and rental coverage perspective, but that doesn’t always reflect how clients are thinking in the current market.
“What we are seeing more often now is brokers weighing up that trade-off more carefully. While fixed-rates can work well from that point of view, not every landlord wants to lock in at today’s pricing.
With uncertainty around interest rates, she said that brokers and their clients were often left trying to balance affordability with flexibility, rather than committing too early.
She said: “That is where discounted products start to come back into the conversation. They are not always the easiest to place, but they can offer a level of flexibility that some clients are actively looking for.
“By introducing 80% LTV options and adjusting pricing across the range, we are giving brokers more scope to structure cases around those real conversations, rather than relying on a single approach.”