buy to let mortgages

The Mortgage Works

We have not verified the information with the lender. You should not rely on this information. If you have an area of concern then please ask us.

The Mortgage Works Buy to let Lending Criteria

These notes were last checked on 11th March 2022

Solicitors

Solicitors/conveyancers with less than two partners will not be eligible to process applications unless they are on our approved panel. Separate Legal Representation Where an applicant nominates a conveyancer to act for the applicant only, TMW will instruct a separate conveyancer to act on behalf of TMW at the applicant’s expense. The applicant cannot instruct a separate firm to act for TMW. Please contact TMW for further information.

Employment

Self Employed Minimum Trading Period

For self employed applicants, a minimum trading period of 2 years
is required.

Accountants Letter / Certificate

We require an Accountants Certificate, or HMRC Tax Calculations and corresponding Tax Year Overviews. They must cover the latest 2 full years, and the end of the latest financial period must not be more than 18 months old. All Accountant Certificates must be prepared and signed by the accountant, with the accountant confirming they have the appropriate professional indemnity cover in place to provide accountancy services.

Projected Accounts accepted

No

Zero Hour Contracts

Nationwide Building Society can potentially accept zero hours contracts as an income type. Casual employment including Zero Hours Contracts, Piece Work, NHS Bank Nurses, Retained Firefighters, Armed Forces Reserve and Supply Teachers. The applicant must have been employed by the same company for a minimum of 12 months. Applicants employed as NHS Bank Nurses or Supply Teachers may have worked for different NHS Trusts or schools. This is acceptable if they’ve been doing this for at least 12 months. The income can only be used where it’s a secondary income on the application; it doesn’t have to be a second job.
Income must be evidenced by the latest P60 and payslip. We will use the lower of the annualised year to date figures from the latest payslip, or the latest P60. Bonus, overtime or commission can’t be used for these contract types.

Applicants

Nationwide Building Society can potentially accept weekly or monthly overtime as an income type. Weekly – latest 8 payslips – add the value of the overtime, divide by 8 and key as Weekly.

Fortnightly – latest 6 fortnightly payslips – add the value of the overtime, divide by 12 and key as Weekly. 4 Weekly – latest 3 payslips – add the value of the overtime, divide by 3 and key as 4 Weekly Monthly – latest 3 payslips – add the value of the overtime, divide by 3 and key as Monthly

Maternity Leave Policy

Nationwide Building Society can potentially accept parental/maternity leave pay (back to work salary) as an income type. For applicants who are on or due to go on parental leave, the existing and future child care costs should be included as an outgoing, and the future number of dependents declared.

Child Tax Credit

Acceptable – from the latest 3 months bank statements, key the average of the last 3 months payments into the ‘Universal Credit’ field.

FTB Considered when accompanied by an existing property owner occupier

Remortgage

Remortgages only acceptable after the property has owned for a minimum of 6 months Available to maximum LTV according to product Raising capital for non-business purposes including for deposit/purchase of a Buy to Let property, will be considered Raising capital for non-structural home improvements will be considered Applicants remortgaging their existing owner occupied property as a BTL must choose from the Let to Buy range.

Maximum no of Applicants

Maximum of 2 per application

Minimum age 1st Applicant

21 years

Minimum age 2nd Applicant

21 years

Minimum term

5 years

Maximum term

35 years

UK Tax Payers

Yes

Non Residents No

Foreign Citizens Accepted No

Expatriates Accepted No

Diplomatic Immunity No

Guarantors Allowed No

Parental Assistance No

Armed Forces Personnel Yes

Additional Conditions

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)

Payday Loans considered

Buy to let Mortgage 

Overpayments 10%

Debt consolidation Yes

Home Improvements Yes

BTL Minimum property value £50,000 (£100,000 for HMOs)

BTL Maximum LTV 80%

BTL Rental Income

The gross rental income, confirmed by the valuer, must cover the monthly mortgage interest payment by at least:
• 125% ICR: Borrowers must be lower rate tax payers (gross income of £45k or less in England/Wales or £43k or less in Scotland) upon completion of the mortgage with no more than 3 rental properties (with or without a mortgage).
• All rental properties are included in this total, including any in-flight purchase or LTB applications with TMW. Proof of income will be required.
• For purchase and Let to Buy applications, 75% of the proposed gross rental income will be added to current gross income to provision for the borrower’s tax band post completion.
• 145% ICR: Applies to borrowers who do not meet the criteria above.
• 170% ICR: Applications for Houses in Multiple Occupation (HMO) regardless of tax status

BTL UK Tax Payers Yes

BTL Foreign Citizens Yes

BTL Expatriates No

BTL Diplomatic Immunity No
BTL Guarantors No
BTL Parental Assistance No

BTL Minimum Portfolio Value None
BTL Maximum Portfolio Value £5,000,000

BTL Max no. of properties in portfolio

75% Up to 6 mortgaged BTL properties Nationwide Group Lending up to £750000
65% 7 or more mortgaged BTL properties
Nationwide Group Lending over £750000 ICR 145% 4.5% Up to 1O mortgaged BTL properties
Nationwide Group Lending up to £1000000, 5.5% for 11 or more mortgaged BTL properties
Nationwide Group Lending over £1000000

BTL Max no. of properties with lender

Unlimited

BTL First Time Buyer

Considered when accompanied by an existing property owner occupier

BTL Retired Applicants Yes

BTL First Time Landlords

Classified as an applicant, who has owned their own home for at least the last 6 months, but has not owned and let a Buy to Let property for the 6 months. Evidence of deposit and proof of personal income is required on all applications. See ‘Personal income requirements’ and ‘Source of deposit’ on web site Loan purpose: to purchase a new Buy to Let property Maximum age 70 at application Maximum 75% LTV Maximum loan size £500,000 (unless otherwise stated) First Time Landlords remortgaging a second residential property as a Buy to Let (for example, inherited property) are not accepted

BTL New Build accepted
BTL New Build House Yes
BTL New Build Flat Yes – up to 65% LTV.

BTL AST over 12 mths

Accepted in the form of an Assured Shorthold Tenancy Agreement (Short Assured Tenancy in Scotland) for a period of up to thirty six months

BTL HMO accepted

Houses in Multiple Occupation require a Specialist Security valuation. TMW consider the following types of property as a HMO: A property occupied by five or more people or with five or more lettable rooms in an area commensurate with multi letting A property with more than one tenancy agreement in place
Properties subject to selective licensing only classified as HMO where at least one of the above conditions are met. Please see the HMO section of the product guide for available options. Maximum age 70 at application Maximum 65% LTV Maximum loan size
£750,000 (unless otherwise stated) Experienced landlords only Let to Buy applications not accepted Rental cover will be assessed on a multi-tenanted basis All let properties will be subject to an Assured Shorthold Tenancy agreement of a minimum of 6 months, maximum of 36 twelve months. Single and multiple tenancy agreements accepted A property must have no more than four habitable storeys and no more than one kitchen Properties consisting of more than one self-contained unit under a single title are not acceptable

A property containing no more than seven lettable rooms A Specialist Security valuation will be required

Portfolio Landlords

TMW’s portfolio landlord definition: A “Portfolio Landlord” is a borrower with four or more distinct mortgaged Buy to Let UK rental
properties (or seven or more for remortgage applications without capital raising) at completion. A “Large Portfolio Landlord” is a borrower with 11 or more distinct mortgaged Buy to Let UK rental properties at completion.

Additional information:
• This includes holiday lets, properties owned through a limited company, ‘consent to let’ properties and all BTL mortgages owned solely or jointly by the applicant(s)
• We’ll only accept applications from portfolio landlords that have at least two years’ letting experience (at least one applicant must meet this requirement on joint applications). We won’t consider foreign properties when assessing portfolio landlords. Affordability assessment We’ll continue to check all new TMW mortgage applications to ensure your client can cover their monthly mortgage interest payment. We’ll also assess the existing portfolio to ensure the overall aggregate LTV and ICR is sustainable. The assessment will be based on the entire portfolio, including the new property and any rental properties without a mortgage. The following rental calculations and maximum LTVs will apply across your client’s portfolio: Keying applications
• We’ll now ask for the client’s personal income on all cases.
• At DIP stage, we’ll look at gross annual buy to let income as well as the total number of properties, to identify if the client is/will be a portfolio landlord on completion of the application.
• If the client has more than 4 properties, we’ll ask for details of the total value and outstanding mortgage balances secured against the portfolio.
Packaging applications All portfolio landlords will need to provide:
• Three months’ current account statements showing rental payments.
• A property schedule, either by: Keying the details into our new Portfolio Portal. Or completing our property
schedule form and uploading into the portal. Once submitted, the details will be automatically validated and the results will be sent to our dedicated team of underwriters for assessment. Depending on case complexity and portfolio size, we may request further supporting information such as a business plan. Once the application has been submitted, we may occasionally ask for further information. So cases can be processed efficiently, we ask brokers submit all requested proofs and additional supporting information but only when this is asked for.

Rental Top Up The Mortgage Works will not consider earned income in affordability assessment.

BTL Notes

• Landlord experience: at least 2 years as a standard BTL landlord or 1 year as a HMO landlord 

Buy-to-Let criteria: 

Long Term Lets

• Long Term Lets accepted up to three years on a single AST
• Non-AST applications (Local Authority I Housing Association Tenancy and Corporate Tenancies) also accepted up to three years.

Let to Buy

Classified as a first time or experienced landlord applicant who is remortgaging their existing residential property as a Buy to Let. Please see the Let to Buy section of the product guide for available options. Maximum age 70 at application Maximum 75% LTV Maximum loan size £500,000 (unless otherwise stated) The applicant(s) must have owned their residential property for at least six months (with or without a mortgage) at the time of application Applications will only be accepted where there is a simultaneous onward purchase of a new residential property (which may be with another lender), to be confirmed by the acting solicitor prior to completion The applicant must vacate the security address upon completion (new correspondence address should be provided) If the new residential property is purchased by way of a mortgage –

A copy of the onward residential mortgage offer must be provided prior to completion Applications where the new residential property will be purchased with cash are considered, provided: The current main residence is unencumbered The onward purchase address will be provided at application The same solicitor will be acting on behalf of the applicant for both purchase and remortgage transactions

Proof of Deposit

TMW reserve the right to request proof of deposit on all applications. If proof of deposit is needed, there is a minimum of 1 months bank statement within 3 months of DIP date. TMW may query large transactions as an audit trail is sometimes required.
Proof of deposit can be provided in the form of bank statements, bonds, stocks & shares portfolio. To see a full list of acceptable proof of deposit visit www.themortgageworks. co.uk.

Gifted Deposit

Maximum of two gifts per application. Two gifts may involve more than two donors where the gift comes from a joint source, e.g. One gift from mother and father and one gift from grandfather and grandmother. This is acceptable. Gifted deposits will not be accepted where the donor resides outside of the UK and/or the funds originate from outside the UK A Confirmation of Gifted Deposit declaration is required for all applications where any of the
deposit has been gifted – Refer to lender

Further Advances

The mortgage must have been satisfactorily conducted and running for a period of 6 months before a Further Advance is considered. The maximum numbers of Further Advances that would normally be considered on any one account are 2 in any 12 month period or 2 in any 36 month period. Proof of income may be requested to support Further Advance applications.

Property

Agricultural Restrictions Not accepted

Back to Back Acceptable

Brick on Wood Acceptable

Conventional Brick I Tile Acceptable

Flat Above Shop

Properties over commercial premises may be considered subject to valuer’s comments, refer to lender.

New Build Flat

New build flats and houses are defined as properties built or sold within the last 12 months. New build Flats accepted 65% LTV

Builder must be on TMWs Acceptable Builders List (only if a limited company)

New Build House New build flats and houses are defined as properties built or sold within the last 12 months. Builder must be on TMWs Acceptable Builders List (only if a limited company)

Ex Local Authority Flat

Ex-Local Authority Flats are accepted if in a building not exceeding 5 storeys with a maximum LTV of 75% and the property must be
recommended as suitable security by the valuer.

Ex Local Authority House

Accepted subject to valuers comments.

Freehold Flat

Not accepted

Flat Storeys No maximum criteria where serviced by a lift, subject to valuer comments.

Flying Freehold TMW will not accept property’s where there is 100% flying freehold.
The valuer must confirm that a flying freehold is present and they
must consider whether the configuration and amount of the flying freehold will have a major effect on salability/marketability and whether to decline the property.

Ground Floor with/without lift No maximum criteria where serviced by a lift, subject to valuer
comments.

Garden Floor with/without lift No maximum criteria where serviced by a lift, subject to valuer
comments.

Minimum Lease on Application

70 Years at application

Minimum Lease on Redemption

30 Years at redemption

Minimum Property Value Let to Buy

£50,000 £100,000 (HMO products)

Accepted – Applicants remortgaging their existing owner occupied property as a BTL must choose from the Let to Buy range.

Mobile Home Not accepted

Maisonette Accepted

Multiple Let Not accepted

More than one kitchen Considered if part of multiple self contained units under a single
title.

More than 6 bedrooms Considered on a HMO basis, properties with 1O or more letable
rooms are not accepted.

NHBC required If new, or built within 10 years of the date of the Mortgage
Application, the security must have either a NHB, Zurich Municipal,
HAPM, LABC, Premier Guarantee, Building Life Plan (excluding self builds under construction), Build-Zone/ Self Build- Zone, Castle 10 (provided by Checkmate), Build Assure, Global Home Warranties, The Q Policy for Residential Properties, The Q Policy for Bespoke Properties (detached only), Proteck, Advantage­ Insurer: Elite Insurance Company (there must be no more than 10 unitsin any continuous structure), CRL new build 10 year structural defects insurance policy for residential property, if constructed between August 2011 and May 2015there must be no more than
1O units in any structure or have a qualified Architect’s Surveyor’s or Structural Engineer’s Supervision Certificate (Professional Consultants Certificate).

No Bathroom Not accepted

No Indoor WC Not accepted

Occupied Not accepted

Part Occupied Not accepted

Right to Buy Not accepted

Part Commercial Not accepted

Second Home No
Holiday Home No
Home for Dependant No
Self Build No
Shared Ownership No

No Existing Mortgage

Accepted – subject to standard remortgage criteria

Solar Panels
The Mortgage Works can potentially accept applications on properties where solar panels exist on the security property.

Studio Flat
Studio flats are acceptable to TMW subject to the minimum internal floor area is no less than 30 square meters and they must have a separate bathroom

Thatched Roof yes

Non Standard Construction Individually assesed
Steel Frame Individually assesed

Prefabricated Concrete

Accepted if the security and adjoining properties (or entire block in the case of flats) are repaired under an acceptable Licensed Repair Scheme.

Timber Frame Brick Gladded accepted, Other cladding – Individually assessed Yes

England Yes
Scotland Mainland only
Wales Yes
Northern Ireland No
Southern Ireland No

Fees

Standard Valuation fees
TT I Chaps fee £20
Homebuyers Valuation fees

Miscellaneous Fees

Specialist list Security valuation Fees available on web site (required for HMO applications)

Accompanying text

For properties valued over £2 million please refer to lender for the valuation fee. Please refer to Lender for any additional fees which may be charged on final redemption such as Deeds Release/Sealing/Admin fees Re-inspection £100 Structural Survey
& house Buyers Report Fees on request. Valuation by Panel Valuer refer to lender for further details.

Transcribed valuations are not acceptable. The transcribe of Home Reports will be accepted for purchase applications in Scotland where no fee is payable and the following conditions will apply: The Home Report must have taken place prior to submitting the application The Home Report must have taken place in the last 90 days.For Buy to Let valuations, the report needs to include a rental assessment. The valuer providing the transcription must be the individual who prepared the original Home Report or inspected the New property The Home Report must have a pre-existing “generic mortgage panel” report within it When the valuation figure is the result of a ‘refresh’ (update) of the original Home Report, it must be based on a further internal inspection that has taken place within the last 90 daysOnly one refresh will be permitted The inspection of the original Home Report must have taken place no more than 9 months ago A restricted panel of valuer’s are acceptable for purchases of property in mainland Scotland; please contact us for details.

Own insurance charge

All properties require an appropriate level of building insurance cover (amount specified by the valuer), to be in place at completion

Miscellaneous

Legal fees package Notes

Only offered on selected remortgage products

Exposure limits The Mortgage Works will consider its overall exposure by applicant, geographical area and development when assessing applications. The maximum number of securities that can be considered per development is: 1 – 3 units: 1 unit 4 – 50
units: 25%, rounded down to the nearest unit 51 – >80 units: 15%, rounded down to the nearest unit The maximum number of securities that will be considered in the same postcode area, to the first alphanumeric section (e.g. RG4, BH24, etc.) per applicant across NBS Group is 10. Property development Applicants who own 25% or more of a company whose principle activity is property development defined as those who buy, then improve and quickly sell for a profit or build new properties to sell are unacceptable to TMW.

Advances

Up to £350,000 80% LTV (Rmg 80%)

Up to £750,000 75% LTV (Rmg 75%)

Up to £1,000,000 70% LTV (Rmg 70%)

Up to £1,500,000 50% LTV (Rmg 50%)

Notes

Illustration Type = KFI+.

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

– Mortgage is NOT for First time buyers

Free standard valuation available. Please refer to TMW intermediary website (criteria section) for full details and applicable terms.

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.

Subject to:

Max 80% LTV

Loan purpose: to remortgage a buy to let property

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

Booking : varies

Early Repayment Charges

varies, 10% capital repayments allowed per year without penalty

Higher Lending

None

Valuation

Basic:

refer

Homebuyers:

up to £100,000 – £290

up to £150,000 – £385

up to £200,000 – £470

up to £300,000 – £570

up to £400,000 – £670

up to £500,000 – £780

up to £600,000 – £795

up to £700,000 – £855

up to £800,000 – £950

up to £900,000 – £1005

up to £1,000,000 – £1090

Min Valuation £50000

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.

Funds Transfer Fee – £20.00 Added to loan.

Acceptable Property Types

Freehold Flat No

Purpose Built Flat Yes

Converted Flat Yes

Flat Over Shop Yes

Maisonette Yes

Studio Flat Yes

Flying Freehold Yes

Thatched Yes

Timber Framed Yes

Concrete No

Agricultural Tie No

Flat Over 4 Storeys Yes

Listed Building Refer

Right to Buy

Not Accepted

New Build acceptable.

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

Foreign Citizens Refer

Ex-Patriates Not Accepted

Income Multipliers

Landlord Type Tax Band LTV Loan Size Interest Rate % Cover Level %

Landlord Basic Rate Any Any 4.99 125

Landlord Higher Rate Any Any 4.99 145

Landlord Additional Rate Any Any 4.99 145

Portfolio Landlord Basic Rate Any Any 4.99 125

Portfolio Landlord Higher Rate Any Any 4.99 145

Portfolio Landlord Additional Rate Any Any 4.99 145

Min months in current position none

Min months in continuous service none

Min no. of years accounts 1

Average years taken to calculate income 1

Will consider declining profit Yes

Outgoings

Stress Rates

The minimum stress rate is used in calculations, however please note the below:

The below stress rates will apply:

Remortgage (without capital raising) – excluding Let to Buy

Product Term under 5 years:

65% LTV or below – 4.50%

>65% LTV – 75% TV – 4.99%

Over 75% LTV – 5.50%

5 year fixed products:

75% LTV or below – 4.50%

Over 75% LTV – 4.99%

10 year fixed products:

All LTVs – 4.00%

All other applications

65% LTV or below – 5.50%

>65% LTV – 75% TV – 5.50%

Over 75% LTV – 5.99%

5 year fixed products:

75% LTV or below – 4.50%

Over 75% LTV – 4.99%

10 year fixed products:

All LTVs – 4.00%

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 Max LTV Max% increase

Capital Raising Acceptable

Home Improvements 80%

Debt Consolidation Acceptable

School Fees 80%

Holidays/Cars 80%

Buy Other Property 80%

Business Purposes Refer to Lender

Divorce Settlement 80%

Unencumbered 80%

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:

  1. 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.

  1. b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with you have been unsuccessful.
 

Remortgage not available to First Time Landlords.

The maximum number of storeys for ex local authority flats / maisonettes outside Greater London is 5, excluding the basement.

Applications where the vendor is a relative of the applicant and those where the property will be occupied by a member of the borrower’s immediate family (Regulated BTL) are not acceptable. Applications for inherited properties are accepted where the applicant is an experienced landlord (see lenders criteria on their website for their definition of this).

LENDING: Will only lend in Mainland Scotland, not on any of the Scottish Isles. Will also only lend in Mainland Wales. Will not lend on Scilly Isles, Isle of Man or Channel Islands.

Valuation Fees for properties with a Purchase Price or Valuation over £2million are by arrangement and the cost will need to be confirmed with the Lender.

For remortgage applications without capital raising and fixed rate product terms of 5 or more years, the higher of stress rate or product pay rate (product pay rate + 0.50% for variable products) will apply. For all other applications, the higher of stress rate or product pay rate + 2% will apply. For Further Advance applications where the existing product’s ending within 3 months, the higher of follow on rate + 2% or 5.50% will be used to stress the existing loan. For remortgages, we’ll apply the lower of the current rent or estimated rental value as given by the valuer. Rental income denominated in a currency other than pounds sterling (GBP) isn’t accepted.

Residency -UK Residents only. -Applicants with a previous address abroad in the last three years are not accepted. -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

Second charge New applications with existing second charges are not accepted (unless repaid as part of the transaction). Consent to second charges post-completion considered on a case by case basis. This will be subject to criteria at the time of application, including rental cover assessment and LTV limits (currently 50% LTV before adding second charge).

Sale and rent back It is not permitted for the vendor to remain as a tenant in the property or to retain an interest in the property.

Keying applications • The clients must show their personal income on all cases. • At DIP stage, the gross annual buy to let income will be looked as well as the total number of properties, to identify if the client is/will be a portfolio landlord on completion of the application. • If the client has more than 4 properties, TMW will ask for details of the total value and outstanding mortgage balances secured against the portfolio

Packaging applications All portfolio landlords will need to provide: • Three months’ current account statements showing rental payments. • A property schedule, either by: o Keying the details into the new Portfolio Portal. o Or completing the lenders property schedule form and uploading into the portal. Once submitted, the details will be automatically validated and the results will be sent to our dedicated team of underwriters for assessment. Depending on case complexity and portfolio size, TMW may request further supporting information such as a business plan. Once the application has been submitted, TMW may occasionally ask for further information. So, cases can be processed efficiently, TMW ask brokers to submit all requested proofs and additional supporting information but only when this is asked for.

A portfolio landlord with four or more distinct mortgaged Buy to Let UK rental properties (or seven or more for remortgage applications without capital raising). • This includes holiday lets, properties owned through a limited company, ‘consent to let’ properties and all BTL mortgages owned solely or jointly by the applicant(s) • The Mortgage Works will only accept applications from portfolio landlords that have at least two years’ letting experience (at least one applicant must meet this requirement on joint applications). The Mortgage Works won’t consider foreign properties when assessing portfolio landlords.

TMW will assess the existing portfolio to ensure the overall aggregate LTV and ICR is sustainable. The assessment will be based on the entire portfolio, including the new property and any rental properties without a mortgage. The following rental calculations and maximum LTVs will apply across your client’s portfolio: Interest Cover ratio (ICR) 145% Rental Calculation Across Portfolio Up to 10 mortgaged BTL properties at completion – Max LTV of 75%, stress rate of 4.50% 11 or more mortgaged BTL properties at completion – Max LTV of 65%, stress rate of 5.50% For applicants with existing Nationwide Group BTL lending of £1million or above, a stress rate of 5.50% will be used to assess the client’s existing BTL properties, alongside a maximum aggregate LTV of 65% (regardless of the number of properties).

All new business products are available for porting. Please contact the lender for the criteria

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

Legal Fees (which may include a fee for registering the mortgage at the land registry) will normally be paid to the conveyancer before the mortgage starts and the applicant should ask their conveyancer for information about these fees. The costs are not known to the Lender and are therefore not included in the APRC.

The Mortgage Works will consider applicants who have active or settled CCJs. Dependent upon value and date registered. May be subject to a senior underwrite.

Payday Loans: The Mortgage Works will consider applicants who have used Pay Day Loans facilities, including applicants who have current or previous payday loans. These applications may be subject to a senior underwrite.

MAXIMUM LOAN SIZE: First Time Landlord maximum loan per property: 80% LTV: £350,000 70% LTV: £500,000 50% LTV: £750,000 (Unless otherwise stated)

Portfolio Landlords: Maximum 65% LTV for 11 or more mortgaged BTL properties at completion. A stress rate of 5.50% at 145% applies here. Maximum 75% LTV for up to 10 mortgaged BTL properties at completion, where a stress rate of 4.50% at 145% applies.

FIRST TIME LANDLORD (if applicable): Maximum 75% LTV. Maximum age 70 at application (no maximum age when applying with an Experienced Landlord at 65% LTV or less). Evidence of deposit is required on all applications. FTLs remortgaging a second property are not accepted. This includes inherited properties not yet in the applicant’s name.

EXPERIENCED LANDLORD (if applicable): Maximum age at entry for both applicants for an Experienced Landlord application is 70 when >65% LTV. There is no age limit for an Experienced Landlord when applying at 65% LTV or less.

Unencumbered properties need to be let out for at least 6 months before they can be remortgaged.

PRODUCT AVAILABILITY: Please note that this product is not available for Existing Borrowers wanting a Further Advance, however it is available for either: Purchase, Remortgage or Porting.

DEPOSIT: Maximum LTV for Vendor, Immediate Family Gifted, Gifted Deposit and Inheritance Deposit is 80% – Any gifted deposit from the vendor would require further information and the total removed from the purchase price of the security when calculating LTV. 75-80% LTV only available on properties with an EPC rating A, B or C.

SETTLEMENT STATUS: Where the applicant does not have a permanent right to reside (settled status) the maximum LTV will be capped at 65%.

Switch to Fix option allows an applicant to switch to an existing customer fixed rate, within the same product range, at any time during the benefit period without incurring early repayment charges.

TMW does not accept foreign nationals from outside the EEA without indefinite leave to remain in the UK.