This change means TMW will no longer apply the flat stress rate of 8.49% which it had brought in earlier this month during the period of turbulence in the markets.
The new rates are:
|
Stress Rates |
Fixed rates |
Tracker & Variable rates |
||
|
Product term under 5-years |
Product term 5-years or more |
Like for like remortgage |
||
|
Non-Limited Company |
Pay rate + 2.00% |
Pay rate + 1.50% |
Pay rate + 5.00% |
|
|
Limited Company |
Pay rate + 0.50% |
Pay rate + 4.00% |
||
Based on the current range, this means buy to let stress rates of between 6.64% and 8.79% depending on the product selected.
Daniel Clinton, Head of The Mortgage Works, said: “Earlier this month we adopted an interim measure of applying a flat minimum stress rate for buy to let mortgages to better protect landlord cashflow during the period of interest rate turbulence. We have now reviewed our stress rates and we are moving to a more tailored approach based on the product type and term.”
TMW will also be temporarily withdrawing its buy to let tracker range and lifetime variable product from tomorrow (26 October).
Full details on all TMW mortgages can be found here.
-Ends-
