From today, Tuesday 26 April, The Mortgage Works (TMW) is increasing the maximum loan-to-value (LTV) on new build flats from 65% to 75%.
The change will help support landlords who are looking to improve the energy efficiency of their portfolio as many new build properties are generally built to have an EPC rating of B or above upon completion. In the coming months, the Department of Business, Energy and Industrial Strategy (BEIS) consultation on ‘Improving the energy performance of privately rented homes’ is expected to conclude, which is proposing to increase the Energy Performance Certificate (EPC) requirement to a C rating for all new tenancies by 2025 and for all existing tenancies by 2028. As such, some landlords are considering investing in new build properties alongside looking at how they can bring their existing portfolio up to standard.
To support brokers and landlords with purchasing new build flats or houses, TMW is also launching a New Build Hub which will contain all the information they need when applying for a buy-to-let mortgage on a new build property, including details of TMW’s new build criteria, top tips for submitting an application, calculators to see how much clients can borrow and access to dedicated support. Given that time is often of the essence when it comes to new build applications, TMW will support brokers and landlords by ring fencing their application from when the valuation is received, right up to when the offer is issued. This will ensure that they can meet any deadlines that, for example, a developer may have put in place.
Andy Dean, Head of Intermediary Support and New Build at The Mortgage Works, said: “As a major buy-to-let lender, TMW wants to play its part in helping improve the energy efficiency of rental properties in the UK. We’re already supporting landlords wishing to purchase new build houses up to 80% LTV and increasing the maximum loan-to-value on new build flats to 75% will help more landlords acquire properties that are generally built to a higher energy performance standard. Furthermore, as a lender that recognises the specialism and time pressure associated with the new build sector, the launch of our new build hub and ring fenced process helps brokers and landlords find everything they need to support them with applying for a buy-to-let mortgage on a new build property, with the added confidence of a timely progression.”
