The Mortgage Works improves buy-to-let affordability criteria
The lender is also reducing its existing portfolio rental calculation stress rate.
"With these latest changes we're pleased to be able to reduce our interest cover ratios so that landlords can borrow more and achieve their buy-to-let aspirations."
- Joe Avarne, senior manager for buy-to-let mortgages at TMW
The Mortgage Works has reduced interest cover ratios (ICRs) across its buy-to-let mortgage range.
For higher rate taxpayers, the ICR has reduced from 165% to 160% and for limited company and lower rate taxpayers, the ICR has been lowered from 130% to 125%.
The Mortgage Works is also reducing its existing portfolio rental calculation stress rate from 5% to 4.5%.
Joe Avarne, senior manager for buy-to-let mortgages at The Mortgage Works, said: “We regularly review our affordability policy to ensure borrowing is sustainable for our landlords.
"With these latest changes we're pleased to be able to reduce our interest cover ratios so that landlords can borrow more and achieve their buy-to-let aspirations.”
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