However its 5-year fixed rate products will have a 145% coverage ratio on the lender’s pay rate rather than the 5.5% stressed rate.
Hinckley & Rugby Building Society will stress test mortgages at 5.5% with a coverage ratio of 145% when the PRA requirements come into force in the New Year.
However its 5-year fixed rate products will have a 145% coverage ratio on the lender’s pay rate rather than the 5.5% stressed rate.
Carolyn Thornley-Yates, head of intermediary sales, said: “We recognise that good quality buy-to-let applications aren’t defined solely by the amount of rental income generated, and that there are instances where the personal ability of the borrower is more than sufficient to support a small portion of the loan, now and in the future.
“Our manual approach to underwriting allows us to consider individual situations in depth, making prudent lending decisions tailored to the borrower’s needs and circumstances.”
The society said it will consider applications that don’t meet the thresholds by taking into account personal income to cover the rental shortfall.
