The Mortgage Works have updated portfolio landlord criteria
The Mortgage Works, which is the Buy to Let arm of Nationwide, are making a move to benefit portfolio landlords with immediate effect. In this move The Mortgage Works have announced changes to their lending criteria which improves the affordability for portfolio landlords making it easier to further expand buy to let portfolios by obtaining a higher mortgage amount than before.
Increased Loan-to-Value for portfolio landlords
Landlords with more than 10 properties in their portfolio the maximum Loan-to-Value has increased from 65% to 75%. This opens up the chance to portfolio landlords to access higher lending with smaller deposits allowing them to expand their portfolio further, with using smaller amounts of their own capital.
Reduced Buy to Let Stress Rate
The Mortgage Works have reduced the stress rate for Buy to Let properties from 5.25% to 5%. The stress rate is used to determine whether borrowers would be able to afford payments on their mortgages under different scenarios such as interest rates going as high as the stress rate. A lower stress rate is positive news for landlords as it increases the affordability and allows higher mortgage amounts to be agreed.
Increases to the aggregate portfolio LTV
Previously if the aggregate portfolio exposure with The Mortgage Works was over £1million the Loan-to-Value was 65%, however this has now been increased to 75% Loan-to-Value over the entire portfolio.
The Mortgage Works classify a portfolio landlord, like many other lenders, as a borrower with four or more Buy to Let properties.
This is excellent news for landlords who are looking for flexibility in obtaining higher mortgage amounts in relation to property value and market rent.
So how can Brooklyns Financial help?
Brooklyns Financial specialises in Portfolio Landlords in reaching their aspirations, so if you are looking at ways of growing your portfolio and obtaining better terms on your existing mortgages then please contact one of our But to Let mortgage experts by phone 01628 564631 or email info@brooklynsfinancial.co.uk.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The information contained within was correct at the time of publication but is subject to change.
Source: The Mortgage Works
