Buy to let landlord mortgage options broadened

Landlords are being offered greater borrowing flexibility after The Mortgage Works widened several of its lending criteria and Pepper Money cut rates across its buy to let range.

TMW is raising the maximum application age for first-time landlords from 70 to 75 at up to 70% LTV.

It is also increasing the maximum total borrowing a landlord can hold across Nationwide Group mortgages from £7.5 million to £10 million.

Meanwhile, Pepper Money has reduced buy to let rates, with deals now starting from 4.54% at up to 70% LTV.

Landlord lending criteria

TMW’s head of buy to let, Dan Clinton said: “As landlords’ circumstances and ambitions evolve, it’s important that our lending criteria evolve too.

“By increasing the maximum age at application and introducing support for eligible inter-family property purchases, we’re giving brokers more options when helping landlords achieve their property goals.”

He added: “Increasing the maximum total borrowing available across Nationwide Group to £10 million also provides portfolio landlords with additional capacity to grow and manage their portfolios.

“These latest enhancements reflect our commitment to listening to broker feedback and continually improving our proposition to support all types of landlords.”

Portfolio borrowing rises

Experienced landlords applying at up to 70% LTV will also face no maximum age, compared with the previous limit applying above 65% LTV.

The Mortgage Works will now accept applications where an existing buy to let property is being purchased from another family member.

For limited company applications, a new declaration form will replace the existing requirement for an intercompany loan agreement.

The changes follow an earlier revision to its property exposure policy allowing it to support more flats and maisonettes within a single development.

Buy to let rates

Pepper Money has reduced pricing across its buy to let ranges for both personal and limited company landlords.

The lender says the products are aimed at borrowers whose circumstances include complex income, lower credit scores or recent credit difficulties.

The lender’s sales director, Paul Adams, said: “We know affordability remains a key challenge for many customers, and brokers need lenders who can offer flexibility when circumstances don’t fit the high street mould.”

Pepper Money has also launched a limited edition remortgage range after recent reductions to its two-year fixed rates.