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TMW ups maximum new build LTV to 75 per cent

  • 26/04/2022
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TMW ups maximum new build LTV to 75 per cent
The Mortgage Works (TMW) has increased the maximum loan to value (LTV) it will accept for new build flats from 65 per cent to 75 per cent.

The change comes into effect today and will help support landlords improve the energy efficiency of their portfolio as new builds tend to have an Energy Performance Certificate (EPC) grade B or higher.

There is upcoming legislation that will mandate that new tenancies have to have an EPC of C or higher by 2025, and all existing tenancies would have to follow suit by 2027, however it is not yet known when this will be ratified.

The lender is also launching a new build hub, which will contain information needed for those applying or a buy-to-let mortgage for a new build.

This includes criteria, tips for submitting an application, borrowing calculators and dedicated support.

TMW said that, in order to support brokers and landlords, it would also ring fence the application from when the valuation is received until the offer is issued so they can meet developer deadlines.

Andy Dean, head of intermediary support and new build at TMW, said that as a major buy-to-let lender it would help improve the energy efficiency of rental properties in the UK.

He added that increasing the maximum LTV on new build flats up to 75 per cent would help landlords buy properties with a higher energy performance standard.

“Furthermore, as a lender that recognises the specialism and time pressure associated with the new build sector, the launch of our new build hub and ring fenced process helps brokers and landlords find everything they need to support them with applying for a buy-to-let mortgage on a new build property, with the added confidence of a timely progression.” he concluded.

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