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TMW reduces limited company rates; Mansfield BS launches deal with reduced ICR

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  • 06/05/2021
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TMW reduces limited company rates; Mansfield BS launches deal with reduced ICR
The Mortgage Works (TMW) will reduce rates on its limited company buy to let range by up to 0.35 per cent from tomorrow.

 

This will include the reduction of its two-year fixed product, up to 75 per cent loan to value (LTV), with a £1,995 fee, now priced at 2.94 per cent, down from 3.19 per cent.  

The two-year fixed deal, up to 75 per cent LTV, with a £999 fee, has been cut by 0.35 per cent to 2.99 per cent. 

The five-year fixed with a £1,995 fee up to 75 per cent LTV, has been cut by 30 basis points to 3.34 per cent. The £999 alternative has been reduced by 35 basis points to 3.39 per cent. 

All the mortgages are available for purchase and remortgage and come with free valuation. 

In addition, TMW will lower the rate on its two-year, fixed-rate buy to let remortgage product, up to 65 per cent LTV, by 0.20 per cent to 1.39 per cent with a £1,995 fee.  

This product offers free valuation and free legals. 

Daniel Clinton, head of The Mortgage Works, said: “The limited company part of the market continues to grow as more and more landlords choose to build their portfolios through limited companies.  

These latest changes will improve our competitive position and showcase our continued commitment and support to limited company landlords.” 

 

Mansfield launches five-year fixed buy to let with reduced ICR 

Mansfield Building Society has launched a five-year fixed rate standard buytolet mortgage with a reduced interest cover ratio (ICR). 

Rental income must be at least 125 per cent of the monthly mortgage payment calculated at five per cent — lower than the lender’s typical ICR of 5.5 per cent.  

For higher rate taxpayers purchasing a property, rental income must be at least 145 per cent of the monthly payments calculated at five per cent. 

The product is priced at 2.74 per cent, has a £199 application fee and £1,300 completion fee. There is also a three per cent early repayment charge for the first three years. 

Andy Alvarez, head of mortgage sales at Mansfield Building Society, said: “We think the new product will appeal because it comes with the certainty of fixed repayments over five years and the reduced ICR will enable landlords to perhaps borrow a little more than our rental income may ordinarily allow.  

This means that landlords may be able to consider new property opportunities or raise extra funds for light refurbishment work on an existing property. 

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