11 Jun 2025

The Mortgage Works boosts support for landlords by reducing affordability stress rate

From today, The Mortgage Works is helping landlords to potentially borrow more by reducing its stress rate by 0.50% on new buy-to-let applications up to 65 per cent loan to value for:

Five-year fixed rate terms, or
Like for like remortgage (all fixed product terms)

The new stress rate will be 4.00 per cent or pay rate whichever is higher.

Buy to Let, Let to Buy, Large Portfolio and HMO applications

Loan purpose	Term	LTV	Stress rate, the higher of:
Like-for-like remortgage	All fixed	65% LTV or lower	4.00% or pay rate
Like-for-like remortgage	All fixed	Higher than 65% LTV	4.50% or pay rate
Purchase or remortgage with capital raising and further advance	One and two-year fixed	All LTVs	5.50% or Pay rate + 2.00%
	Five-year fixed	65% LTV or lower	4.00% or pay rate
	Five-year fixed	Higher than 65% LTV	4.50% or pay rate

There are no changes to the stress rate applied for Limited Company mortgage applications.

Damian Thompson, Director of Landlord at The Mortgage Works, said: “These positive changes to our stress rates will serve to boost affordability. They will enable landlords to borrow more with us but, at the same, will ensure that we continue to lend responsibly.”

Jeni Browne, Business Development Director, Mortgage Finance Brokers, said: “So many landlords have been unable to remortgage or acquire new properties because of the more onerous rental calculations that have been in play on the back of higher interest rates – this has been at a huge cost to the Private Rental Sector. Seeing the UKs largest Buy to Let lender tackle this head on by reducing their rental calculations thus allowing landlords to borrow more per pound of rental income, will mean that property investors will be able to remortgage thus accessing better mortgage rates, and get investing once more.”