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TMW re-enters limited company BTL with broker pilot

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  • 07/11/2017
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TMW re-enters limited company BTL with broker pilot
The Mortgage Works (TMW), the buy-to-let (BTL) arm of Nationwide Building Society, is to pilot a limited company mortgage product range for landlords with a pair of brokers.

The new product range, which aims to widen options for professional landlords, will come to market on 8 November.

TMW had previously offered a range of limited company BTL mortgage products, but is now planning to re-enter the sector as a “response to a growing professionalisation of the buy-to-let mortgage market.”

Five BTL mortgage products will be made available to landlords who own property within a limited company.

The products include:

  • A two-year fixed product at 2.99% with 75% loan to value (LTV) and a £1,995 fee.
  • A two-year fixed product at 3.49% with 75% LTV and no fee.
  • A five-year fixed product at 3.64% with 75% LTV and £1,995 fee.
  • A five-year fixed product at 3.99% with 75 LTV and no fee.
  • A separate two-year fixed product for houses in multiple occupation (HMO) at 3.49% with 65% LTV and a £1,995 fee.

 

Pilot brokers

During the pilot phase the products will be accessible through a small panel of brokers – Mortgage Intelligence and The Buy to Let Business. TMW says that if the initial trial phase proves successful it will roll out the range on a wider basis.

“Lending to landlords who own property within a limited company has become more of a focus in recent years,” said Sally Laker, managing director of Mortgage Intelligence.

“We welcome the news that TMW is responding to insight from landlords and brokers and will be testing the likely increase in demand for this option in the market,” she continued.

The key criteria for limited company lending will remain the same as for personal BTL borrowing, and will be available for purchase and remortgaging.

Ying Tan, managing director of The Buy to Let Business, said that TMW’s entry was “a defining moment in the limited company space where a major high street lender has decided to operate in this growing sector,” and that the increased competition among lenders will “hopefully mean improved criteria and attractive rates.”

Commenting on the announcement, Paul Wootton, managing director of TMW, said: “Having previously offered limited company products and with the long-term expertise to support professional landlords, TMW is now looking to return to this market. By piloting a limited company buy to let mortgage through selected intermediary partners, we are aiming to respond to the potential demand in the market and further support those professional landlords for whom such products may be suitable.

“Once we have analysed the response and quantified demand, we will assess if we can roll the range out more widely across our intermediary partners,” he added.

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