TMW launches limited liability guarantor products
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The Mortgage Works has launched a range of guarantor mortgages which allow guarantors to cap their liability.
To qualify for the limited liability deals applicants must have an LTV of at least 70%, while the guarantor must be able to afford the shortfall plus a further 10%.
Limited liability deals available include a three-year fixed rate at 5.99% up to 75% LTV with no arran-gement fee and £1,000 cashback.
TMW is also offering full liability deals whereby guarantors need to be able to afford 100% of the product and keep up payments on existing mortgages. Products include a two-year fixed rate deal at 5.59% up to 85% LTV with a 1% arrangement fee and a two-year tracker at 2.49% up to 75% LTV with a 2% fee.
Tracie Pearce, head of products at TMW, says: “Many lenders have guarantor propositions but few offer a limited liability facility such as ours.”
Halifax and Cheltenham & Gloucester, both part of Lloyds Banking Group, are withdrawing their guarantor mortgages this month, citing lack of demand.
