The Mortgage Works (TMW) will increase the buy-to-let stress rate to 8.49 per cent and will bring out a selection of products.
The lender said that the changes would come into force from tomorrow.
TMW said that the change in the minimum stress rate was an “interim measure to better protect landlord cashflows during a period of interest rate turbulence”.
It added that its affordability model remained under review, and it planned to launch a more “tailored approach to stress rates” in due course.
Several lenders have been increasing their stress rates over the past week or so as interest rates are expected to increase. Lenders include TSB and Natwest.
TMW product updates
On the product side, TMW will offer a one-year fixed rate at 75 per cent loan to value (LTV) at 4.64 per cent and a two per cent fee.
It will also offer a two-year fixed rate at 65 per cent LTV and a five-year fixed rate at the same LTV at 5.14 per cent. Both are subject to a three per cent fee.
Daniel Clinton, TMW head, said: “These new buy-to-let mortgages offer our most competitive rates to landlords who want to fix their repayments and manage their cashflow.
“As a responsible lender, it is important we respond to recent events, ensuring our affordability model reflects the latest interest rate environment and helps safeguard the ability for our landlords to afford their mortgage both now and in the future.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
