Lenders widen options for self-employed borrowers and short-term let investors
Hinckley & Rugby for Intermediaries and CHL Mortgages have both launched new mortgage products aimed at borrowers with more complex needs, offering increased flexibility and competitive pricing.
Hinckley & Rugby has introduced three new mortgage products under its Income Flex range, aimed at supporting borrowers who do not meet conventional income assessment criteria.
The additions, launched today, are available at up to 90% loan-to-value (LTV) and take advantage of the lender’s recently increased affordability assessment of up to 5.5 times loan-to-income (LTI).
The new offerings include a five-year fixed rate at 6%, a two-year fixed rate at 6.25%, and a two-year discounted rate at 5.59%, with a discount of 1.45% off the lender’s standard variable rate.
The products are available to applicants who qualify under the lender’s Income Flex criteria, which allow for a broader range of income sources. The criteria are designed to accommodate cases involving self-employed borrowers, including those using projected income, net profits, or only one year’s financial accounts.
Hinckley & Rugby recently increased its maximum LTI from 4.49 to 5.5 for eligible Income Flex cases, in an effort to make financing more accessible to those with higher but non-traditional incomes.
The new product launch follows earlier pricing changes implemented in July across the lender’s full product suite, covering core, fixed, Income Flex, Credit Flex and Flex Plus ranges.
“We know brokers often come across perfectly sound cases that don’t fit neatly into rigid criteria, and that’s exactly where Income Flex can help, especially for self-employed clients or those with irregular income,” said Laura Sneddon (pictured right), head of mortgage sales and distribution at Hinckley & Rugby for Intermediaries.
“The introduction of these three new products gives brokers more tools to support clients at higher LTVs, with the flexibility of up to 5.5 times LTI in place. We want to give brokers solutions that reflect the real lives of their clients, not just what’s easy to assess on paper.”
CHL Mortgages, meanwhile, launched seven new products within its short-term let buy-to-let mortgage range, designed for holiday lets or serviced apartments.
All are available up to 75% LTV and include two- and five-year fixed rate options, with products offering free valuations and no product fees.
The lender also cut rates by up to 15 basis points on selected limited edition buy-to-let products. These now start at 2.56% for single dwellings and 2.60% for houses in multiple occupation (HMOs) or multi-unit freehold blocks (MUFBs), with a range of fee options.
“This rate reduction on our limited edition range further demonstrates our support for landlords,” said Darrell Walker (pictured left), group sales director at CHL Mortgages. “And with our short-term let range now offering borrowers options with free valuation and no product fee, this is a great opportunity for landlords who may be looking to diversify their portfolios and explore other investment opportunities.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
