Offa opens BTL finance range to FTBs; Hinckley & Rugby BS launches visa BTL mortgage range – round-up

The lender said first-time buyer BTL finance applicants only need to earn £18,000 per year, and the affordability assessment has been simplified so customers with terms under five years pay the standard rate plus 1%.

Those with terms of five years or more pay the standard rate.

Portfolio clients will be subjected to more “realistic stress testing” based on the average of current five-year fixed rates, which stands at 6.6%. Previously, this was the standard variable rate (SVR), and the change means large portfolio cases are now “more viable”.

British expats in Malaysia and Hong Kong are also now eligible for Offa’s Sharia-compliant BTL finance.

Sagheer Malik, chief commercial officer and managing director of retail finance at Offa, said: “We strive to make our Sharia-compliant home finance available to the majority of people rather than just the richest among us, which means constantly working to make our services inclusive and affordable.

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“This is an example of our actions speaking louder than our words, as we now accept first-time buyers for the first time, drop[ped] the minimum required age 18 and [made] our stress testing more transparent, along with many other changes… that make applying for our finance straightforward, quick and easy.”

Hinckley & Rugby BS launches visa BTL mortgage range

Hinckley & Rugby Building Society has launched a visa BTL mortgage range, with pricing beginning from 5.79%.

The range aims to “help skilled professional[s], entrepreneurs and investors on visa to buy or refinance property in the UK”.

It includes a two-year discount rate at 75% loan to value (LTV) at 5.79%, a two-year fixed rate at 75% LTV at 6.1% and a five-year fixed rate at 75% LTV at 5.99%.

The interest coverage ratio (ICR) is 125% for basic-rate taxpayers and 145% for higher- and additional-rate taxpayers.

All products can be used for purchase and remortgage, with loan sizes ranging from £100,000 to £1.5m.

There is no minimum UK residency and a manual underwriting process.

Laura Sneddon, head of mortgage sales and distribution at Hinckley & Rugby Building Society, said: “At Hinckley & Rugby, we understand the growing demand for tailored mortgage solutions among professionals relocating to the UK. By expanding our visa lending criteria and launching our new visa BTL range, we are making it easier for brokers to place cases and support clients looking to invest in the UK property market.

“Brokers have been instrumental in shaping this offering through our Voice of the Broker forums, and we are proud to deliver solutions that directly address their requirements.”