Buy to Let Mortgages Mortgage Works
Buy to Let Mortgages Mortgage Works
About the Mortgage Works
The Mortgage Works is a subsidiary of Nationwide Building society, as Nationwide do not currently offer buy to let mortgage deals directly; instead, they offer them through their specialist lender The Mortgage Works.
Buy to let mortgage deals from The Mortgage Works are only available through independent intermediaries such as ourselves. Like any buy to let mortgage, The Mortgage Works have a set of requirements and criteria to determine whether you might be eligible to borrow from them.
For first time landlords, buy to let mortgage deals from The Mortgage Works typically require:
- Maximum loan value of 75%
- Minimum age of 21 and maximum age of 70 at application.
- Maximum loan size of £500,000 unless otherwise stated.
- Must be owner occupied
- Minimum term of 5 years
- Gross rental income must be at least 125% of the monthly mortgage payment.
Buy to Let Regulations
Changes to the way in which the buy to let mortgage market is regulated has affected the way lenders consider applications.
Although The Mortgage Works currently only require a rental coverage ratio of 125%, the majority of lenders require a rental coverage ratio of at least 145% and up to 170% for houses in multiple occupation. The additional rental coverage percentage is to minimise the risk of landlords falling into arrears with their mortgage payments, especially when their property is without tenants.
When applying for a Mortgage Works' buy to let mortgage, it is important to note that lenders will now apply a stricter stress test than before. Landlords have to demonstrate that they can afford mortgage payments in the event that interest rates increase to 5.5%.
For landlords with multiple properties, The Mortgage Works will review their entire property portfolio to ensure the landlord has a proven track record of buy to let properties. It should be noted that landlords cannot spread equity across their portfolio and therefore lenders will no longer provide a buy to let mortgage for landlords with one or more properties that are not profitable.
Choosing a Buy to Let Mortgage with The Mortgage Works
Whether you’re an experienced landlord or a first time investor, The Mortgage Works has a range of different buy to let mortgage deals to suit you. When deciding which deal is best for you, there are a few aspects of your personal circumstances that you should take into consideration. It is important to consider how much of a deposit you can afford, how much rental income you expect to receive and the value of the property you are interested in buying.
Some of the mortgage packages available through The Mortgage Works can be seen below.
Buy to Let Mortgage Rates – The Mortgage Works offers a range of different mortgage deals to suit different situations. These include buy to let mortgages for first time landlords, housing in multiple occupancy, limited occupancy and property portfolio clients.
Let to Buy Mortgages for New and Existing Landlords - If you are a new or experienced landlord who is thinking about remortgaging your existing residential property as a buy to let property; The Mortgage Works has packages to suit your needs.
It is likely that you will not have access to The Mortgage Works' deals; as a result you might want to consider contacting an independent intermediary who can offer you deals on their behalf. If you would like to compare The Mortgage Works' buy to let mortgage deals along with other leading mortgage deals, why not call us today on 0117 403 4222, or fill in our online contact form on this page to request a call-back.