View more on these topics

TMW hikes BTL stress rate to 5.50%

House-Home-Property-Ladder-Mortgage-700x450.jpg

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.

Recommended

Ying-Tan-700.jpg
4

Buy-to-let Watch: TMW is just the first…

When others follow TMW’s lead on their rental calculations, landlords in lower-yield areas will have much less choice Another day, another challenge for our sector. In a move that surprised no one but no doubt disappointed many, The Mortgage Works has become the first lender to hike its rental calculation. The Nationwide-owned firm announced last […]

Mortgage-House-Coins-Wallet-House-700x450.jpg

TMW B2L bombshell will lock thousands out of market

Thousands of landlords will be locked out of the buy-to-let market after the market’s second biggest lender severely tightened its criteria, say experts. Earlier today Nationwide subsidiary The Mortgage Works announced it was increasing its rental cover requirements from 125 per cent to 145 per cent and cutting its maximum LTV from 80 per cent […]

Scissors-Cut-Tailor-Measure-Measurement-700.jpg

The Mortgage Works cuts rates on 2-year loans with £1,995 fees

The Mortgage Works will cut rates on its two-year fixed and tracker rates with a £1,995 fee by up to 0.20 per cent. Rates for the lender’s existing two-year fixed rate products with a £1,995 fee have been reduced by up to 0.20 per cent and now start at 1.89 per cent. Meanwhile, TMW’s two-year […]

Patient - thumbnail

Company sick pay – new findings

Research by insurer LV= suggests that some 11 million employees in the UK have no company-paid sick leave entitlement. So if an employee from within the above grouping cannot work through illness or injury for any period of time, their only income would likely be that provided by state benefits alone.

A guide to automatic re-enrolment

Since the introduction of auto-enrolment in 2012, it has been a popular topic in the press. Recent media focus has been geared towards small and micro employers; however attention is set to return to the UK’s largest businesses as they prepare for re-enrolment. Johnson Fleming has produced a useful guide that provides essential information to help you […]