It has increased the maximum loan per property to £2m for buy to let (BTL) and limited company applications, up from £1.5m previously. Meanwhile, the maximum loan available on its let to buy has risen from £500,000 to £1m.
TMW has raised the maximum overall borrowing limit to £7.5m, which it said would support landlord borrowers with larger portfolios.
In an update to its affordability assessment for portfolio applications, TMW will consider properties within a landlord’s existing portfolio so the interest coverage ratio (ICR) and loan to value (LTV) remain sustainable.
It will split the current background ICR policy of 145% and apply 125% to properties in the portfolio that are under a limited company structure.
For properties owned in a landlord’s name, the ICR policy will stay at 145%. The stress rate of 4.75% and maximum aggregate LTV of 75% that apply in the aggregate portfolio policy will remain unchanged.
How brokers can shape the future of shared ownership
Sponsored by Halifax Intermediaries
Dan Clinton, head of BTL mortgages at TMW, said: “This is the latest in a series of enhancements we’re making to our landlord offering. Brokers have been highlighting the need for these changes, and we have listened and delivered.
“As one of the country’s largest BTL providers, it’s important we support landlords across their entire portfolio, and these enhancements will enable us to do just that.”
Nick Mendes, mortgage technical manager at John Charcol, added: “TMW’s increase to maximum loan sizes and refinement of its aggregate portfolio policy are a clear show of support for professional landlords. Higher caps give experienced investors more flexibility to fund and refinance larger assets, while applying a 125% ICR to limited company holdings reflects prevailing market practice and should improve case certainty for well-run special purpose vehicles (SPVs).
“Overall, these are pragmatic changes that align affordability and capacity with real-world portfolio management, signalling continued commitment to the professional BTL market.”
Earlier this week, the lender introduced decisions in principle (DIPs) for limited company borrowing.
