TMW, the specialist subsidiary of Nationwide, has become the only lender in the buy-to-let market to offer up to 80% LTV. It maintains that it continues to have a ‘long-standing, prudent approach to lending’ and said the move demonstrates its commitment to supporting the housing market.

The 80% LTV applies to three of the lender’s one-year fixed rates, its one-year tracker, 18-month fixed rate, two-year fixed rate and three-year fixed rate mortgages.

David Whittaker, managing director of Mortgages for Business, welcomed the move, but said that the rise straight to 80% was unexpected: “It is a real statement of lending, and well done to TMW.

It is a bold step.

“Paragon has to be the lender to watch. We need the return of a dedicated buy-to-let lender, but I expect that when it comes back, it will have more conservative LTVs than TMW. Paragon will be back as soon as it has a financial model that works for it and I would measure that in weeks rather than months.”

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Ying Tan, managing director of The Buy-to-Let Business, added: “It goes to show that there are still very good margins to be made. Buy-to-let arrears have held up well and the people who are left are the serious investors, many of whom have been waiting for 80% LTV.

“TMW understands the market very well and its underwriting is such that it can manage the risk and keep the margins.”