TMW relaunches 80% LTV range and simplifies stress rates

The Mortgage Works is returning to lending at 80% LTV on its buy-to-let, let-to-buy and limited company range of mortgages.

From tomorrow, two-year fixed rates at 80% LTV will be available from 5.74% and five-year fixes start from 5.94%, both with a 2% fee.

All rates 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, available for purchase, remortgage and further advances.

TMW’s range of 80% LTV products will be available where a property has an EPC rating of C or above.

In addition, TMW is simplifying its affordability criteria, which it says will improve the position for the majority of applications received.

For trackers, variable rates and fixes at two years or below, the stress rate will be the higher of pay rate +2% or 5.50%.

For like-for-like remortgages and fixed rates at five years or over, the stress rate is the higher of pay rate ot 4.50%.

For buy-to-let and let-to-buy, the Interest Cover Ratio (ICR) will be 130% at the lower tax rate and 165% at the higher tax rate. The ICR for HMOs and limited company HMOs is 175% and the ICR for limited company buy-to-let is 130%.

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.”