The Mortgage Works  

TMW hikes portfolio buy-to-let proc fees

TMW hikes portfolio buy-to-let proc fees

The Mortgage Works, the specialist buy-to-let arm of Nationwide Building Society, is launching a dedicated mortgage range for larger portfolio landlords, with an enhanced procuration fee.

The new mortgages are for landlords with with more than 10 mortgaged buy-to-let properties, and TMW said the additional 0.10 per cent gross fee on top of the standard procuration fee was to reflect the additional work involved for brokers due to the more specialist nature of larger portfolio mortgage applications.

The same will apply to limited company products, currently being piloted by TMW.

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Paul Wootton, managing director of TMW, said: "As part of our commitment to landlords and brokers, we recognise both the specialist needs of those landlords with larger portfolios and those using limited companies, and the extra work involved as a result for brokers supporting them.

"Along with recent improvements to our product offering, we are continuing to recognise the expertise needed in a market that has become increasingly specialised by increasing the procuration fee available."

The new range will offer a selection of products for purchase, remortgage and further advances, with a range of products with £995 and £0 fees at 65 per cent loan-to-value (LTV), 75 per cent LTV and 80 per cent LTV. 

Products available will include those with free valuation and free standard legals or £250 cashback.

The rates for the products start at 2.34 per cent at up to 65 per cent LTV, with a £995 arrangement fee, free standard valuation and free legals.

For purchase or remortgage, rates for the up to 75 per cent LTV product start at 2.59 per cent with a £995 fee, free standard valuation and a £250 cashback.  

For the five-year fixed rate rate products, remortgage rates start at 2.79 per cent for the up to 65 per cent LTV product with a £995 fee, with free standard valuation and free legals. 

TMW recently removed its age limit at application for experienced landlords looking to borrow up to 65 per cent LTV and also increased the maximum LTV for buy-to-let mortgages from 75 per cent to 80 per cent for first-time and experienced landlords.

The group is not the only one to turn to the limited company market to find growth.

Specialist lender Kensington announced a move into limited company lending earlier this week. 

David Hollingworth, communications director at mortgage broker London & Country, said demand for limited company mortgages is expected to grow following recent tax changes.