Hinckley & Rugby BS Launches New Buy-to-Let Deals as Principality BS Raises Rates: What London Landlords Need to Know

New Buy-to-Let Deals from Hinckley & Rugby BS

Hinckley & Rugby Building Society has expanded its buy-to-let (BTL) mortgage offerings with two-year discounted deals available up to 80% loan-to-value (LTV). Notably, there are new options tailored specifically for limited company landlords, with rates starting from 4.99%. Additionally, discounted rates on two-year BTL mortgages for limited companies have been reduced to 5% at 70% LTV.

This is a significant development for landlords, particularly those holding properties via limited companies—a structure increasingly popular for tax efficiency and liability protection. The availability of discounted rates at competitive LTVs can improve financing flexibility and reduce initial borrowing costs.

Principality BS Rate Increases: What to Watch

In contrast, Principality Building Society has announced it will raise its residential and BTL mortgage rates from 7 May 2026, with increases up to 0.15% depending on the product and LTV tier. While the rise may seem modest, it adds to the cumulative pressure on borrowing costs in a market where the Bank of England base rate remains elevated.

For landlords with existing Principality mortgages nearing renewal, or those considering new borrowing, these increases could affect rental affordability calculations and cash flow projections.

Practical Implications for London Landlords

Financing Strategy and Mortgage Choice

The new Hinckley & Rugby discounted deals offer an attractive entry point for landlords looking to refinance or acquire additional properties, especially for limited company structures. However, discounted rate mortgages, while initially cheaper than fixed rates, often revert to higher variable rates after the discount period, which can increase repayments unexpectedly.

Landlords should weigh this flexibility against the certainty of fixed-rate deals, particularly in a volatile interest rate environment. Engaging a mortgage broker early to explore both fixed and discounted options tailored to your portfolio and risk appetite is advisable.

Impact on Different Landlord Profiles

• Single-Unit Landlords: Might benefit from the lower entry rates of discounted deals to reduce initial costs but should plan for potential payment increases post-discount.
• HMO Landlords: Given the larger borrowing sums, even small rate changes can significantly affect cash flow; fixed-rate stability might be preferable.
• Portfolio Landlords: Should review the mix of mortgage products across properties to balance flexibility and risk.
• Accidental Landlords: May want to prioritise fixed rates to avoid payment shocks and simplify budgeting.

Compliance and Letting Agent Advice

Letting agents should update their mortgage product knowledge to advise landlords accurately, especially those with limited company ownership. This ensures compliance with lending standards and supports landlords in meeting their financial obligations to tenants.

Monitoring and Next Steps

• Review Current Mortgage Deals: Assess if switching to Hinckley & Rugby’s new discounted deals offers savings.
• Plan for Rate Increases: For Principality mortgage holders, factor in the upcoming rate rise in budgets.
• Engage Mortgage Brokers: Early consultation can uncover the best financing solutions tailored to your portfolio.
• Stay Alert to Base Rate Changes: The Bank of England’s decisions will continue to influence mortgage costs; adjust investment strategies accordingly.

How Rentals & Sales Can Support You

Our landlord intelligence hub offers portfolio reviews, compliance audits, and mortgage strategy consultations designed to help you navigate these lender changes confidently. Whether you manage a single property or a large portfolio, we can assist in benchmarking your current mortgage terms, evaluating refinancing options, and enhancing your rental pricing strategy to maintain profitability.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Landlords should consult with qualified mortgage advisors or financial professionals before making borrowing decisions.