Offset  

Hinckley launches offset buy-to-let deal

Hinckley launches offset buy-to-let deal

Hinckley & Rugby Building Society has launched two new buy-to-let mortgages.

The deals include an offset mortgage product – making the society one of very few lenders to offer offsetting on a buy-to-let.

The offset is a lifetime discount at up to 75 per cent loan-to-value (LTV) that charges 2.89 per cent. 

It has an application fee of £250 and the completion fee is £1,250. 

There is a free valuation on properties worth up to £1m.

The second new mortgage is a 2.55 per cent five-year fixed buy-to-let at up to 60 per cent LTV. 

The application fee is £250 and the completion fee is £999. 

There is a scaled valuation fee and early repayment charges (ERCs) step down from 5 per cent in year one to 1 per cent in year five.

Hinckley & Rugby head of intermediary sales Carolyn Thornley-Yates said:  “Landlords can benefit from our manual approach to underwriting which includes the consideration of personal income to support rental income, and joint borrower/sole proprietor arrangements.”

David Hollingworth, associate director of communications at L&C Mortgages, said Hinckley’s deal is a great example of a smaller lender looking to offer something different.  

He said: “Offsetting functionality in the buy-to-let market is a real rarity and is clearly a feature that will appeal to some landlords.  

“With the changes to tax relief on mortgage interest phasing in from April more landlords may like the idea of using excess rental income to reduce their interest bill.  

“The rate on offer is also keen for a long term variable deal at 75 per cent LTV.”

emma.hughes@ft.com