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Hinckley and Rugby Building Society

Mortgage Type

Buy To Let

Property Value (min)

No minimum value

Advance (min)

£75,000

Advance (max)

£500.000 at 60% LTV
£350,000 at 70% LTV

Current Max LTV on pilot scheme is 70%

Up to 3 Buy to Let mortgages may be held with the Society by any borrower, subject to
an aggregate loan limit of £1,000,000

Term (Max)

40 years

Minimum Age

21 years

Maximum Age

No maximum - all "later" life lending will be reviewed by credit committee during dip/application process.

Family Cash Gift Deposit

Yes

Family Gift of Equity Deposit

Accepted, but 20% is required to allow no other deposit is required. Builders deposit: - The Society will reduce the purchase price by the amount of builders gifted deposit and require a minimum of 10% deposit from the applicants on the reduced purchase price.

Income (min)

£25,000

Restrictions

Hinckley and Rugby Building Society can potentially accept Buy to Let applications from individuals they deem property developers provided they can meet minimum income requirements and provide satisfactory proof of income.

In the last 12 months, applicant's/Ltd co must not have bought more than 3 properties before applying with H&R

The Society does not consider lending on contract reassignment properties.

Between 4 and 10 property portfolio landlords considered.

The maximum LTV of the portfolio must not exceed 70%.

Let to Buy (Turning Residential into Buy to Let)

Yes - consider LTB applications on referral. The maximum the Society will lend depends on the interest coverage ratio (ICR) and/or an income affordability test. The mortgage will be considered to be self-supporting if the ICR is at least 145% of the monthly payment at an assumed reference rate, currently 5.5%.

The exception to this is for five-year fixed rate mortgages (where available), for which the ICR requirement is 145% at the product pay rate.

If the mortgage is not self-supporting at the stressed rate, the shortfall in the rental income received and the rental income required in order to be self-supporting must be covered by the borrower’s personal income using a net free pay calculation which takes into account net income, personal expenditure, the residential mortgage payment at an assumed stressed rate and any deficit from rental income from any other BTL properties, also at an assumed stressed rate. In all instances where personal affordability is being considered alongside the rental income, the ICR must equal or exceed 145% at the product pay rate.

Warnings
For Let to Buy applications, the Society will require sight of the mortgage offer for the proposed residential purchase prior to the release of the Let to Buy offer.

DWP Tenants

Yes to DSS

Ex-Local Authority Properties

Houses - Yes, up to product max

Flats - Yes, up to 4 storeys and no deck access.

Minimum years remaining on leasehold property

85 years remaining on the lease when the mortgage starts, and a minimum of 50 clear years remaining on the lease at the end of the mortgage term. The Society’s basic legal requirements for leasehold properties are described in the Society’s entries in section 5 of parts 1 & 2 of the CML Lenders Handbook CML Handbook.

Minimum Ownership

6 months minimum ownership required

Permanent rights to reside and remain

Hinckley and Rugby Building Society will consider applicants that hold a 'Tier 1' working visa that has been renewed at least once
Hinckley and Rugby Building Society will consider applicants that hold a 'Tier 2' working visa. If this is the first Tier 2 working visa, they must have a minimum of 3 years remaining.
Please refer all instances where the applicant does not have indefinite leave to remain.

Ex-Patriates

No

New Builds

New build houses accepted

New build flats accepted

Credit Score

Do not credit score, look at credit history and voters roll information. For any instances of imperfect credit or missing voters roll please refer to the sales team. Will only credit search on receipt of a fully packaged application, at this point a full footprint will be left. There is not credit searching done at DIP stage, therefore a DIP will not leave any mark on the client credit file.

Rental Calculation

125% @ 5.5% on single unit – unless 5 year fixed, then calculated at product pay rate.

Historic CCJ’s & Defaults

Consider on referral if CCJ is satisfied, was registered 5 years ago and for no more than £500. Defaults will be considered individually and will need to be satisfied.

The Society will consider on referral mortgage arrears of no more than 2 months in the
last 2 years. Please refer all enquiries to the sales team.

Valuation Fees

Valuation fees paid direct to lender at the lender fee scales.

Maximum number of applicants

4 applicants / directors

Countries

England and Wales only.

Access

Access to Hinckley & Rugby BS is available via 3mc - currently piloting a Ltd Company BTL scheme

Property Type / Commercial

Single units - including freehold and leasehold.

Location

Will lend in England and Wales

Portfolio Landlords

Portfolio Landlords Accepted

Background Portfolio Requirements

– No maximum LTV for the overall portfolio
– A minimum rental stress of 145% at 5.5%

Portfolio Landlord Criteria

– No limit on the amount of lending with Hinckley & Rugby
– Maximum of 10 in the portfolio

Additional Document Requirements

– Portfolio Schedule – Not required
– Business Plan – Not required
– Cashflow Statement – Not required
– Asset & Liability Statement – Not required
* Lender will accept client versions so long as covers the lenders minimum requirements