The Mortgage Works is giving the buy-to-let sector a boost by increasing its LTV from 70% to 80% on its core range.
The specialist arm of Nationwide is now offering one-year fixed rates from 4.69% with a 2.5% arrangement fee or a 5.69% deal with a 1.5% arrangement fee.
Other options include a one-year tracker at 4.69% with a 2.5% arrangement fee and a two-year fixed rate at 5.99% with a 2.5% arrangement fee, all up to 80% LTV.
Tracie Pearce, head of products at The Mortgage Works says the increase in the LTV on its buy-to-let range demonstrates its commitment to supporting the housing market.
She says: “We are the only lender to offer this level of borrowing which will help landlords without a large deposit. The Mortgage Works continues to have a long standing prudent approach to lending, offering landlords and intermediaries access to innovative, flexible mortgage solutions.“
Mike Fitzgerald, sales director at Emba group, says: “TMW has a can do attitude and are more helpful then some lenders when it comes to submitting a case. With house prices starting to creep up again now is a good time for it to increase its LTV. It should also help to move the buy-to-let market along and encourage other lenders to increase their LTVs and re-enter the market.”
David Whittaker, managing director of Mortgages for Business, says: “Finally we’re seeing a lender move the pieces on the chess board in a positive way. We’ve been waiting for two years for upbeat news in the buy–to-let market and TMW have made it clear they feel as optimistic as we do about buy to let’s future.
“Many portfolio landlords have been unable to expand over the last 18 months as they have reached their maximum with the mainstream lenders.
“They will welcome the news that alternative options at higher LTVs are becoming available. It will be interesting to see how other lenders react to this move from TMW. I’m sure they will follow suit, what’s not certain is how quickly they’ll decide to do so.”