TMW hots up buy to let mortgage war with new dealsMake Text Bigger
A range of new buy to let mortgages is available from leading lender The Mortgage Works from April 13.
The Mortgage Works (TMW) – the specialist buy to let lending arm of the Nationwide Building Society – is among the UK’s largest lenders to residential property investors.
In 2010, the lender provided around £16.4 billion for residential property investment.
The key changes in TMW’s lending are:
- Interest rates on selected 12-month fixed rate mortgages cut by 0.5%
- Interest rates on buy to let trackers cut by 0.5%
- Loan-to-value on all mortgages nudged up from 70% to 75%
Rates are also improved on let-to-buy and first time landlord mortgages, while interest rates for house in multiple occupation (HMO) loans and limited company purchasers are increased.
Key to many landlords, rent cover on 80% loan-to-value mortgages is a change to 125% of product pay rate or 5.99%, whichever is the highest.
For landlords with a mortgage of £100,000, rent cover at 5.99% will be set at a minimum of £623 per calendar month.
[Calc info: ((£100,000*5.99%)*125%)/12]
All buy to let purchase mortgages come with a free valuation and free legal fees, subject to conditions.
New fixed rate deals include a two-year package at 5.49% with £799 flat fee.
TMW is the latest in a string of lenders to launch new buy to let mortgage deals in recent weeks.
The move is seen as a response to more competition as lenders jostle for market share.
Skipton Building Society has started receiving new business after an absence from the market.
Platform Home Loans, the buy to let subsidiary of the Co-Op Bank has revamped mortgage deals for property owners, while new lenders Aldermore Bank and Whitelaw Laidlaw Bank have also launched packages for landlords.
Although buy to let mortgage packages have doubled in the past 12 months, many flatter to deceive as lenders have separated out interest only, repayment and remortgage loans as different products when they are a variation of the same deal.
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