Buy-to-let  

The Mortgage Works increases maximum LTV

The Mortgage Works increases maximum LTV

The Mortgage Works has reintroduced 80 per cent loan-to-value (LTV) products to its range of buy-to-let mortgages.

The increase in maximum LTV, from 75 per cent to 80 per cent, includes purchase and remortgage products for first time and experienced landlords, as well as Let to Buy.

In addition The Mortgage Works, which is Nationwide's specialist buy-to-let arm, is also increasing the maximum LTV for buy-to-let mortgages on houses of multiple occupation will increase from 65 per cent to 75 per cent.

The same criteria will apply as to the products available through the limited company range, which is currently being piloted.

Paul Wootton, Nationwide's director of specialist lending, said: "The Mortgage Works is extending its range of mortgage products to include loans at up to 80 per cent 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.

"The Mortgage Works 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."

The two-year fixed rate 80 per cent LTV products start at 2.99 per cent with a 2 per cent fee and 3.99 per cent with no fee, and are available for purchase and remortgage.

Meanwhile the five-year fixed rate products start at 3.59 per cent with a 2 per cent fee and 4.19 per cent with no fee.

For any new application above 75 per cent LTV, a stress rate of 5.99 per cent or pay rate plus 2 per cent will apply, whichever is greater and where the term is less than five years.

For terms of five years or more, the stress rate is 4.99 per cent.

The maximum loan per property is £350,000.

Matthew Bird, an adviser at Newport-based Seer Green, said: "Since the changes in the stamp duty rules for buy-to-let purposes and also the change in the taxation rules where you cannot offset mortgages against higher rate tax, you have seen a decline in the amount of buy-to-let mortgages.

"Anything like this that is going to make it more viable will be a good thing for the buy-to-let market."

damian.fantato@ft.com