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TMW hikes BTL stress rate to 5.50%


The Mortgage Works is increasing its rental stress rate from 4.99 per cent to 5.50 per cent for all new buy-to-let applications.

The lender will charge the highest figure out of 5.50 per cent and pay rate plus 2 per cent.

The 4.99 per cent charge will still apply to fixed rate product terms of more than five years, or for remortgages of up to 65 per cent LTV.

The changes will come in from 19 December.

The lender’s criteria changes will not affect borrowers that want a product switch or transfer of equity.

For applications where overall buy-to-let lending with the Nationwide Group exceeds £1m a stress rate of 5.99 per cent will continue to apply.

TMW managing director Paul Wootton says: “TMW is making these changes to comply with the requirements set out by the PRA in its recent Supervisory Statement, to be implemented by 1 January 2017.”

TMW increased its interest cover ratio to 145 per cent in May this year.



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