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The Mortgage Works Lending criteria

The Mortgage Works Lending criteria

The Mortgage Works - Buy to let Lending criteria

Notes: The following information may contain errors. We have not verified this information with the lender.

Ask your broker to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key facts Illustration. Please ask your broker for a Key facts Illustration

Mortgage Product

Advances
Upto 500,000 75% LTV (Rmg 75%)
Upto 750,000 70% LTV (Rmg 70%)
Upto 1,000,000 65% LTV (Rmg 65%)
Upto 1,500,000 50% LTV (Rmg 50%)

Notes
Mortgage is Portable, Mortgage is Flexible, 10% Overpayments allowed per year.


Your mortgage is portable. This means that if you move house and we are able to offer you a new mortgage. You can transfer the amount you owe on the same terms without having to pay any early repayment charges.

If you carry forward less than the amount you owe, any early repayment charge payable will be calculated on the difference. The decision whether or not we will be able to offer you a new mortgage will depend upon the circumstances at the time including the type of property you want to buy, you personal circumstances and the amount you want to borrow.
- Mortgage is NOT for First time buyers
Switch to Fix facility on Tracker products allows the customer to switch to a new business fixed rate (within the same range as their original application) at any time during the benefit period without incurring Early Repayment Charges.

Up to two applicants accepted per application.

First Time Buyers considered when accompanied by an existing property owner (First Time or experienced landlord).
Buy to Let Guarantors not considered.

The mortgage introducer cannot also be the applicant.

Vendor cannot be a relative of the applicant.

Regulated Buy to Lets (where the property will be occupied by the borrower or a member of the borrower’s immediate family, now or in the future) are not accepted.

Limited Companies as applicants not accepted.

First Time Buyer (FTB): An applicant who has not owned any type of property (Residential or Buy to Let) for at least the last six months.

First Time Landlord (FTL): An applicant who has owned their own home for at least the last six months, but has not owned and let a Buy to Let property for the last six months.

Experienced Landlord: An applicant who has owned and let a Buy to Let property for at least the last six months (they may or may not own and occupy their own home).

Residency
UK residents only

Three years, consecutive UK address history required.

Foreign nationals must be resident in the UK for at least three years prior to application, must have permanent right to reside and must have a UK bank account.

Age
Minimum - 21
Maximum age at application - 70

An overpayment is a payment that is in addition to the minimum payment you must make each month. The minimum payment is shown in Section 6.


You can make lump sum or regular overpayments up to 10% of the mortgage, in each 12 month period from the date the mortgage starts until the end of the redemption tie in period without having to pay an early repayment charge. Amounts above this are subject to an early repayment charge (as detailed in Section 10).


After this date there are no restrictions on the amounts that you can overpay.
If you make an overpayment the amount you owe us will be reduced immediately, and the amount of interest you pay, will be reduced from the first day of the following month.


The applicant(s) must have owned their residential property for at least 6 months at the time of application
Loan purpose: to purchase a new buy to let property
First time landlords wishing to remortgage their existing residential property for the purposes of letting must choose from the Let to Buy range.
The property must be in England, Wales or mainland Scotland.

Buy to Let : Accepted
Capital Rest Period : Monthly

Repayment Types
Repayment Yes
Endowment Yes
PEP Yes
Pension Yes
Interest only (no RV) Yes
With Profits Yes
Unit Linked Yes
ISA Yes
Split Repayment Yes

Fees


Arrangement : varies can be Added
Booking : None

Early Repayment Charges
During fixed and discount periods. 10% capital repayments allowed per year without penalty

Higher Lending
None

Valuation
Basic:
upto 100,000 - 365
upto 150,000 - 390
upto 200,000 - 430
upto 300,000 - 490
upto 400,000 - 555
upto 500,000 - 615
upto 600,000 - 695
upto 700,000 - 755
upto 800,000 - 795
upto 900,000 - 865
upto 1,000,000 - 910
upto 1,250,000 - 1125
upto 1,500,000 - 1275
upto 1,750,000 - 1475
upto 2,000,000 - 1675


Homebuyers:
upto 100,000 - 450
upto 150,000 - 535
upto 200,000 - 620
upto 300,000 - 720
upto 400,000 - 820
upto 500,000 - 930
upto 600,000 - 975
upto 700,000 - 1035
upto 800,000 - 1115
upto 900,000 - 1200
upto 1,000,000 - 1275

Min Valuation 50000
Minimum Arrangement Fee 595 where Arrangement Fee applicable.
Valuation fee (where applicable) includes 150 application fee (non refundable).
For properties valued over 2 million please refer to Lender for the valuation fee.

The total amount payable includes a non refundable 150 application fee. Where a product offers a free valuation, no payment is required.
Our solicitors fees will be payable by the applicants.

Higher Lending Charges are calculated on the difference between 75% of the value of your home and the amount you wish to borrow. Added fees will not be included in this calculation.
Lenders Conveyancing Fee - 100.00 Payable on completion. A non refundable fee to your conveyancer for acting on behalf of The Mortgage Works (UK) plc payable before the mortgage starts. The figure quoted here is an estimate - the total fee for conveyancing may be higher. You should ask your conveyancer for further details.
Sealing Fee - 90.00 Payable on redemption.
Telegraphic Transfer - 25.00 Added to loan.

Acceptable Property Types
Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Yes
Studio Flat Refer
Flying Freehold Refer
Thatched Yes
Timber Framed Yes
Concrete No
Agricultural Tie No
Flat Over 4 Storeys Refer
Listed Building Refer

Not Accepted
New Build acceptable. Properties over commercial premises may be considered subject to valuer’s comments, please refer to lender.

Studio flats may be considered, please refer to lender.

Properties with agricultural ties may be considered, please refer to lender.

New build flats and houses are defined as:
- A house/flat built within the last twelve months
- A house/flat built over twelve months ago but still owned by the developer
- A house/flat built over twelve months ago but the first purchase/legal completion of the property was less than twelve months ago
Applications for new build flats accepted up to a maximum of 65% LTV.

Builders must be on TMW’s approved list, please refer to lender.

Purpose built studio / bedsit flats considered provided that the internal floor area is not less than 30sq. metres and contains a separate bathroom and separate kitchen.

Properties Next Door
Applications not accepted where the proposed security is attached to a property owned by the applicant.

One tenancy agreement accepted per property, except for HMOs where multiple tenancy agreements are accepted.

Rental cover will be assessed on the basis of rental value as a single family dwelling.

All properties must be in a lettable condition, to be determined by the valuer.

Accepted Locations : England, Scotland, Wales

Requirements


Bank Statements No
At Least 3 Months Pay Slips No
P60 No
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References No

Insurance
Buildings Conditional

Conditions On Loan
Min Loan 25,001/Rmg 25,001
Max Loan 1,500,000/Rmg 1,500,000
Max Portfolio of BTL Loans none
Min Age 21 years
Max Age none
Min Term 5 years
Max Term 35 years
First Time Landlord Max Loan per Property:
80% LTV - 350,000
70% LTV - 500,000
(Unless otherwise stated)
Maximum age 70 at application.

Up to two applicants accepted per application.

First Time Buyers considered when accompanied by an existing property owner (First Time or experienced landlord).

Buy to Let Guarantors not considered.

The mortgage introducer cannot also be the applicant.

Vendor cannot be a relative of the applicant.

Regulated Buy to Lets (where the property will be occupied by the borrower or a member of the borrower’s immediate family, now or in the future) are not accepted.

Limited Companies as applicants not accepted.

Total BTL borrowing with Nationwide Group
(including new loan)
Max LTV on new property
Up to 500,000 - 80%
500,001 - 750,000 - 75%
750,001 - 1,000,000 - 70%
1,000,001 - 1,500,000 - 65%
1,500,001 - 5,000,000 - 60%
N.B Portfolios held with The Mortgage Works prior to 21 March 2008 are not affected

Subject to the max loan per property (unless otherwise stated)
80% LTV: 350,000
75% LTV: 500,000
70% LTV: 750,000
65% LTV: 1,000,000
50% LTV: 1,500,000

First Time Landlord Max Loan per property (Unless otherwise stated)
350,000 - 80% LTV
500,000 - 70% LTV

UK residents only.
Three years, consecutive UK address history required.
Foreign nationals must be resident in the UK for at least three years prior to application, must have permanent right to reside and must have a UK bank account.

New business for Limited Companies not accepted. No additional borrowing or increase in LTV will be permitted for existing TMW Limited Company accounts.

Buildings insurance, to cover the full cost of rebuilding your home.
You can arrange this through the lender or make your own arrangements.
Foreign Citizens Refer
Ex-Patriates Not Accepted

Income Multipliers
Rental Income must be 125% of the monthly mortgage payments when calculated using a rate of 4.99%.

Min months in current position none
Min months in continuous service 12
Min no. of years accounts 1
Average years taken to calculate income 1
Will consider declining profit Refer

Outgoings
Rental income based on 4.99% x 125%.
The gross rental income, confirmed by the valuer, must cover at least 125% of the monthly mortgage payment and will be calculated using the following rates:
• Fixed rates: Up to and including 65% LTV based on product pay rate or 4.99%, whichever is higher
• Fixed rates: Above 75% LTV based on product pay rate or 5.49%, whichever is higher
• Fixed rates: Above 80% LTV based on product pay rate or 5.99%, whichever is higher
Exception to this - Fixed rates: of 5 years or more up to and including 80% LTV based on product pay rate or 4.99%, whichever is higher.
• Tracker/Variable rates: Based on product pay rate + 0.5% or 4.99%, whichever is higher

Buy to Let exposure with Nationwide Group of over 1m (before or after new loan):
• Fixed rates: new property application based on product pay rate or 5.99%, whichever is higher
• Tracker/Variable rates: new property application based on product pay rate +0.5% or 5.99%, whichever is higher
For remortgage, we will apply the lower of the passing/current rent or estimated rental value as given by the valuer.

Proof of personal income is not required, except for:
• First time landlords/first time buyers
• Experienced landlords who are non-owner occupiers (purchase only)

Personal income will be used in conjunction with other information relating to the applicant and property to assess the case, to validate that the Buy to Let loan will be used for its intended purpose.
Personal income from an experienced landlord (owner occupier) will not be required on joint applications.

Eligible income is defined as:
• Gross earned income (excluding bonus, overtime and commission)
• Pension income

Acceptable proof of income:
• Self employed applicants: Latest SA302* (self assessment tax calculation form)
• Employed applicants: Latest payslip
• Retired applicants: Latest payslip/pension statement

if SA302 is not available an accountant’s reference can be accepted. Please contact us with accountants’ details in order for us to request.

Rental Income must be 125% of the monthly mortgage payments when calculated using a rate of 4.99%.
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education Taken into account
Extra Income:-
Other Income - Guaranteed Add 100% to income before multiply
Other Income - Regular Add 50% to income before multiply
Other Income - Irregular No
Investment Income Add 100% to income before multiply
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension No
Car Allowance Add 100% to income before multiply

Remortgage


Capital Raising Refer to Lender
Home Improvements 75%
Debt Consolidation Refer to Lender
School Fees 75%
Holidays/Cars 75%
Buy Other Property 75%
Business Purposes Refer to Lender
Divorce Settlement 75%
Unencumbered 75%

Remortgages acceptable after the property has been owned for a minimum of six months.

Raising capital for non-business purposes including for deposit/purchase of a Buy to Let property, will be considered.


Adverse Credit
CCJs : Not Acceptable
Defaults : Not Acceptable
Arrears : Not Acceptable
Bankrupt : Not Acceptable
Current IVA : Not Acceptable
Repossession : Not Acceptable

ENC
- The Lender will judge customers with previous or existing adverse credit in a flexible manner and every case will be judged on its individual merits, along with the customer's ability to keep up repayments on the mortgage, taking into account his/her existing liabilities.
- The Lender will consider cases of financial difficulty and mortgage arrears sympathetically.
- The Lender follows the general principles of the Council of Mortgage Lenders' Statement of Practice on Handling Arrears and Possessions, including:
a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears, consistent with both your interests and those of the Lender.
b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with you have been unsuccessful.