The Mortgage Works (TMW) has announced a returning to lending at 80% loan-to-value (LTV) on its buy-to-let (BTL), let-to-buy (LTB) and limited company range of mortgages.

As part of the changes the lender has also confirmed it is simplifying its affordability criteria.

The new rates at 80% LTV on TMW’s BTL offering include two-year fixed rates starting from 5.74% with a 2% fee, as well as five-year fixed rates starting from 5.94% also with a 2% fee. These will be available for both purchase and remortgage with other rate and fee combinations also available.

Limited company fixed rates start from 6.39% with a 2% product fee and are also available for purchase, remortgage and further advances.

To balance the need to support a key segment of the BTL market, and recognising future ambitions across the private rental sector to achieve more energy efficient homes, TMW revealed that its range of 80% LTV products will be available where a property has an Energy Performance Certificate (EPC) rating of C or above.

“TMW is one of the UK’s largest BTL lenders and we always look to offer a wide range of mortgages for landlords,” said head of specialist lending at TMW, Dan Clinton. “We are pleased to return to lending at 80% LTV, giving further options for those with a smaller deposit.

“We continually listen to feedback and appreciate that affordability policy has become a complex area to navigate. These latest changes simplify TMW’s approach and coupled with the wider changes being made to products and criteria, demonstrate TMWs commitment to landlords, brokers and the wider BTL market.”

Managing director of Coreco Mortgage Brokers, Andrew Montlake, said: “It is great to see a lender like TMW showing that it is listening to brokers and are aware of landlords’ requirements in the current environment. Taken as a whole, these changes are positive and should see more landlords able to get the borrowing they require.

“What is more, reintroducing 80% LTV lending for landlords also confirms its commitment to and belief in the BTL sector which is an important statement. It seems that rumours of the death of the BTL market have been exaggerated yet again.”

Sales director at Dynamo, Tony Field, added: “It’s great to see TMW relax their background portfolio stress testing to ease the way for more clients to apply for a buy to let mortgage who otherwise would not have met their requirements.

“Coupled with this, they have increased their exposure brackets to help portfolio landlords leverage more via TMW. It’s also great to see them bring back 80% LTV BTL products to meet the needs of landlords where the quality of the property is good and rental yields are high.

“The interest cover ratio calculation change is an interesting move that at first glance could look to be unusual, however tests on recent cases indicate that a landlord can actually borrow more in most instances with only a few exceptions. Some positive changes in a tricky market.”

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