The new rates at 80% LTV include:
Buy to Let
- Two-year fixed rates starting from 5.74% with a 2% fee
- Five-year fixed rate starting from 5.94% with a 2% fee
All of the above are available for purchase and remortgage with other rate/fee combinations also available.
Limited Company fixed rates start from 6.39% with a 2% product fee. All available for purchase, remortgage and further advances.
To balance the need to support a key segment of the buy to let market, whilst recognising future ambitions across the Private Rental Sector to achieve more energy efficient homes, TMW’s range of 80% LTV products will be available where a property has an EPC rating of C or above.
Full details on all products can be found here.
Simplification of affordability criteria
TMW is also, from tomorrow (7 June) simplifying its approach to affordability, which will improve the position for the majority of applications received.
The new affordability policy is as follows:
Stress Rates
|
Application type |
Trackers & Variable |
Fixed for 1 or 2 years |
Fixed for |
|
|
Purchase, |
Like for Like Remortgage |
|||
|
Stress Rate |
Higher of pay rate |
Higher of pay rate |
||
Interest Cover Ratio
|
Buy to Let and Let to Buy |
HMO and Limited Company HMO |
Limited Company Buy to Let |
|
|
Lower rate tax |
Higher rate tax |
||
|
130% |
165% |
175% |
130% |
For previous rates and additional changes to TMWs policy on the total buy to let borrowing limits with the Nationwide Group, see notes to editors.
Dan Clinton, Head of Specialist Lending at The Mortgage Works, said: “The Mortgage Works is one of the UK’s largest buy to let lenders and we always look to offer a wide range of mortgages for landlords. We are pleased to return to lending at 80% loan to value, giving further options for those with a smaller deposit.
“We continually listen to feedback and appreciate that affordability policy has become a complex area to navigate. These latest changes simplify The Mortgage Works approach and coupled with the wider changes being made to products and criteria, demonstrate TMWs commitment to landlords, brokers and the wider buy to let market”
Andrew Montlake, Managing Director of Coreco Mortgage Brokers, said: “It is great to see a lender like TMW showing that they are listening to brokers and are aware of landlords’ requirements in the current environment. Taken as a whole, these changes are positive and should see more landlords able to get the borrowing they require. What is more, re-introducing 80% LTV lending for landlords also confirms their commitment to and belief in the buy to let sector which is an important statement. It seems that rumours of the death of the buy to let market have been exaggerated yet again”.
Tony Field, Sales Director at Dynamo, said “It’s great to see TMW relax their background portfolio stress testing to ease the way for more clients to apply for a buy to let mortgage who otherwise would not have met their requirements. Coupled with this, they have increased their exposure brackets to help portfolio landlords leverage more via TMW. It’s also great to see them bring back 80% LTV buy to let products to meet the needs of landlords where the quality of the property is good and rental yields are high.
“The interest cover ratio calculation change is an interesting move that at first glance could look to be unusual, however tests on recent cases indicate that a landlord can actually borrow more in most instances with only a few exceptions. Some positive changes in a tricky market.”
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