The Mortgage Works (TMW) has reintroducing 80% loan to value (LTV) products to its range of buy-to-let mortgages.
The Nationwide Building Society’s specialist buy-to-let arm has announced an increase in maximum LTV for buy-to-let mortgages, from 75% to 80%, includes purchase and remortgage products for first time and experienced landlords, as well as Let to Buy.
The same criteria will apply to those products available through the current limited company range, which is currently being piloted. TMW’s range also includes 50%, 65% and 75% LTV buy-to-let mortgage products.
The two year fixed rate 80% LTV products start at 2.99% with a 2% fee and 3.99% with no fee, and are available for purchase and remortgage. The five year fixed rate products start at 3.59% with a 2% fee and 4.19% with no fee.
In addition, the maximum LTV for buy-to-let mortgages on HMOs (Houses of Multiple Occupation) will increase from 65% to 75%.
Paul Wootton, Nationwide’s director of specialist lending, said: “TMW is extending its range of mortgage products to include loans at up to 80% LTV to give greater choice and more options for landlords, including those taking out new buy-to-let mortgages and those looking to refinance existing borrowing. TMW is entering an established part of the market to offer a range of competitive rates to landlords working to manage their costs, including for those with smaller amounts of capital invested.”
For any new application above 75% LTV, a stress rate of 5.99% or pay rate plus 2% will apply, whichever is the higher and where the term is less than five years. For terms of five years or more, the stress rate is 4.99%. The maximum loan per property is £350,000.