TMW launches 10-year fix and cuts limited company rates
The two-year fixed at 75 per cent loan to value (LTV) is now priced at 2.49 per cent with a £1,995 fee, while the no-fee equivalent has a rate of 2.94 per cent.
The five-year fixed product at the same tier with a £1,995 fee has a rate of 2.99 per cent and the fee-free option has a rate of 3.19 per cent.
These products are available for purchase and remortgage.
TMW has also added a 10-year fixed mortgage at 65 per cent LTV with a rate of 2.44 per cent. It has no product fee and offers a free valuation.
Daniel Clinton, head of lending at The Mortgage Works, said: “Over the last few years, we have seen more and more landlords build their portfolios through limited companies following changes to the tax regime.
“We always look to offer a range of competitive mortgages to suit whatever the landlord’s circumstances. These latest products reinforce our support for the limited company market.”
He added: “In the current economic climate, we know that many landlords are looking to fix their repayments for a longer period, which is why we have also introduced a new 10-year fixed product to our buy to let range.”
Proposed EPC requirements cause landlords to consider selling up
A survey conducted by The Mortgage Works (TMW) comprising 600 landlords found those with affected properties felt they would not be able to complete or finance the works needed in the time set out by the government.
The government has suggested a change to the law requiring all new rental tenancies to have a rating of C and above by 1 April 2025, while existing tenancies will have to meet this target by 2028.
Current law states that a rental property must have an EPC rating of E or above.
Those with larger portfolios were more likely to consider selling, with 58 per cent of landlords with six to 10 properties saying that they had thought about selling some or all of their properties. This figure rose to 63 per cent among landlords with 20 or more properties.
Just 35 per cent of landlords with one property said they thought about disposing of their asset.
Daniel Clinton, head of lending at The Mortgage Works, said: “With currently less than four years before all new tenancies need to be in properties rated EPC-C or above, there are still landlords who need to undertake remedial work on at least one of their properties.
“They are therefore understandably concerned about how they will both fund the work, find someone to do it and have it completed in time.”
He added: “The side effect of these concerns is that a significant number of landlords admit they are ready to give up and already considering selling properties.
“An unintended consequence of this sentiment could result in a backwards step in meeting the government’s target around climate change, for example, if these properties are taken up by the owner occupier market, where there are currently no minimum energy efficiency requirements.”
Portfolio landlords most affected
Landlords with larger portfolios were more likely to have a higher number of properties in need of refurbishment too, the research found.
Those with four or five properties have an average of two properties that need work. This increased to four homes for those with six to 10 properties, seven for those with 11 to 19 properties and 12 for those who have 20 or more properties.
Some 35 per cent of landlords with one property said it was rated between D and G, while 52 per cent claimed their property already met the proposed standard.
Lack of knowledge
Two thirds of respondents said their properties needed improvements to be energy efficient however, a third admitted they did not know what renovations would be necessary, highlighting a lack of knowledge.
For those who did know, 37 per cent said traditional insulation was needed, a quarter said an upgrade to the boiler would be necessary, while 24 per cent said they needed to refurbish existing utilities.
Again, it was landlords with more properties who said they would need to undertake the most remedial work. The proportion of landlords stating their properties needed insulation rose to 59 per cent for those with 20 or more properties, boiler upgrades increased to 37 per cent of landlords with this portfolio size.
The research showed that landlords had an average of £15,579 set aside for unexpected costs related to their rental properties. However, more than 51 per cent fell short of this average, citing they had less than £10,000.
Although landlords with 20 or more properties had larger savings of £35,202, the average amount per property was less than those with smaller portfolios.
Clinton said: “Financing is also key and while our research suggests landlords have money set aside to deal with unexpected costs arising from their properties, it may not be enough to also cover the energy efficiency improvements.”
TMW relaunches HMO; Aldermore adds limited edition BTL deals – round-up
The products are available up to 75 per cent loan to value (LTV) and include two-year fixes starting from 2.29 per cent and five-year fixes starting from 2.99 per cent. Both have a two per cent fee.
The mortgages are available for purchase, remortgage or further advance with other rate and fee combinations also available.
Daniel Clinton, head of lending at The Mortgage Works, said: “At the start of the pandemic we paused HMO lending as the market faced increased uncertainty, especially with this type of property being largely occupied by students.
“We have continually reviewed the market and with normality in the sector returning as students return to face-to-face learning, we are now reintroducing our HMO product range.”
TMW stopped HMO lending on 31 March 2020.
Aldermore launch pair of limited edition BTL mortgages
Aldermore has expanded its specialist buy-to-let (BTL) offering with two limited edition five-year fixed products to support individual and company landlords.
The products come with the added benefit of zero fees.
For individual and company landlords submitting two or more properties in a single application, a five-year fix is available at 2.98 per cent up to 75 per cent LTV.
For individual and company landlords submitting single residential investment properties, a five-year fix is priced at 3.18 per cent and available up to 75 per cent LTV.
The limited edition rates have zero product fees for purchase and remortgage, assisted legal fees, free valuations and no funds transfer fees on remortgages.
Aldermore has also introduced assisted legal fees for all landlords looking to remortgage their HMO and multi unit freehold properties.
Jon Cooper, head of mortgage distribution, Aldermore, said:“We want to support the many landlords reviewing how they want to manage and grow their portfolios in the future. Our latest product offering provides landlords with competitive rates, assistance on fees, and gives them long-term stability so managing their portfolios is easier.”
Nationwide launches website targeted to educate and professionalise property investors
The Landlord Works is a free website targeted at property investors but can be harnessed by mortgage advisers to help clients manage a property portfolio, access a discounted self-assessment tool or educational guides alongside tools relating to managing time and income.
According to the English Private Landlords Survey, published in 2019, nearly two thirds of landlords believe the industry had changed for the worse, predominantly due to the increase in regulation, legislation and tax.
Paul Wooton, director of home propositions at Nationwide (pictured) said the project had been in development for two years and is recognition that UK landlords need support, in alignment with brokers.
“Advisers often say to us that they don’t know where to go when landlords are asking them about broader topics like legislation and regulation across the sector. We’ve also spoken to over 100 landlords trying to understand what a landlord wants and tested the site with them.”
With around 155 key pieces of buy-to-let legislation and Nationwide data suggesting 300 landlords a day search for support on tax, landlords have stressed that this information needs to come from a trusted source, said the mutual.
Wooton said: “This is what differentiates us from other providers. First and foremost this is about us and our belief that if you can provide the tools, guidance and support, that frees up the landlord to provide a decent home for their tenants.
“We have 16m members some of whom who are renting. They are seeking more support and we can offer that through first-time buyer mortgages and the industry work we carry out, but we also need to offer tools and guidance to landlords to provide better homes for tenants.”
The site does not offer a buy-to-let mortgage application submission tool for The Mortgage Works products yet.
The Landlord Works allows landlords to connect multiple bank accounts to their profile to allow them to manage their finances. It also includes an open banking-driven tool for property management.
Sara Bennison, Nationwide’s chief product and marketing officer, said: “The private rented sector is in dire need of reform, but to get there, landlords need to be given every ounce of support.”
“As a mutual we are committed to improving the housing system and the private rented sector is a major part of that, particularly today. It is why we are working with a range of other organisations on the Future of Home and how we can collectively address some of the issues and make a positive difference.”
Greg Cunnington, director of lender relationships and new homes at Alexander Hall, said: “As one of the first major lenders to support limited company applications, The Mortgage Works has consistently been one of the most supportive lenders for the increased professionalisation of landlords.”
He added: “It is very positive to see Nationwide and The Mortgage Works strengthen their collaboration with intermediary partners even further with the launch of The Landlord Works, which we believe will be hugely beneficial to our clients.”
Landlords lack confidence in improving property EPC rating due to cost and awareness
According to research from The Mortgage Works (TMW), which polled around 750 landlords, respondents said this was due to a lack of capital and awareness about how to achieve it.
The UK government currently requires buy-to-let properties to have an EPC rating of E or above, but there are plans to raise it to C for new tenancies by 2025 and for all existing tenancies by 2028.
The biggest challenges for landlords to meet new sustainability requirements include property constraints, with 51 per cent citing it as a concern.
This was followed by access to property whilst tenants are renting and disruption whilst works are carried out, which both came to 44 per cent.
The report also noted that portfolio landlords were more likely to face challenges than individual landlords, with 66 per cent of those with 11 properties or more citing property constraints as a concern. This figure dropped to 49 per cent for those with one to 10 properties.
Half of portfolio landlords with 11 or more properties said gaining access to homes while tenanted and disruption caused by construction posed issues, while 43 per cent of landlords with one to 10 properties cited those reasons as barriers.
Affordability is also a problem, with more than a quarter of landlords saying a lack of funds was the biggest challenge for them.
Around six in 10 landlords said they would have to spend money to get properties up to standard and 14 per cent stated they would need to spend their annual rental income or more.
TMW’s head Daniel Clinton said it was not surprising that landlords were not confident in their ability to update their properties, and added the lender had brought out a Green Further Advance product earlier this year to support them in doing this.
The product has a rate of 1.49 per cent. It is available to existing customers and permits loans between £2,500 and £15,000 with a maximum loan to value of 75 per cent.
It is available on two-year and five year-fixed rate terms, and landlords who make green improvements can benefit from rates can be up to 0.50 per cent lower.
Clinton added: “It’s also great to hear that the government would like to introduce a new financial support package to help people improve the energy efficiency of their homes, however, we hope that any such scheme would also be open to helping landlords meet their requirements.”
TMW to launch 80 per cent deals for green homes
From tomorrow, TMW will offer a 2.49 per cent two-year fix and a five-year fixed rate priced at 2.99 per cent, with a two per cent fee. Both deals are for standard buy to lets and can be used for purchases and remortgages. Different fee combinations are available.
Limited company rates are priced at 2.79 per cent for a two-year fixed rate and 3.49 per cent for a five-year fix with a two per cent product fee.
TMW said it was balancing the need to offer mortgages to landlords with smaller deposits while supporting the private rented sector in its ambitions to become energy efficient.
Earlier this year, TMW launched its green further advance to help landlords fund improvements to their properties to help increase their energy efficiency.
Daniel Clinton, head of The Mortgage Works, said: “Buildings are the second largest source of emissions in the UK and we want to continue to do our bit to help tackle climate change. With impending regulation on the horizon affecting minimum EPC standards across the private rented sector, we are taking proactive measures through our lending proposition to support the transition.
“Providing buy-to-let mortgages on A to C rated properties at higher LTVs is a prudent step and follows on from the recent launch of our first ever green deal for existing customers seeking to make energy improvements.”
TMW is also re-introducing a range of buy-to-let mortgages with no product fees. The new remortgage rates start from 1.99 per cent at 65 per cent LTV with free valuations and standard legals.
TMW reduces limited company rates; Mansfield BS launches deal with reduced ICR
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 buy–to–let 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.”
The Mortgage Works launches green further advance range
Loans of £2,500 to £15,000 at up to 75 per cent loan to value are available with a rate of 1.49 per cent, which the lender said was “significantly lower” than its standard range.
The range comprises two and five-year fixed products with no fees which are available to landlords who will use the whole loan for sustainable improvements.
The list of potential renovations includes adding solar panels, window upgrades or replacements, boiler upgrades, and installation of air source heat pumps and new electric car charging points.
Buy-to-let (BTL) properties in England and Wales are required to earn an Energy Performance Certificate (EPC) rating of E by law.
However, the Department of Business, Energy and Industrial Strategy is currently consulting on improving energy efficiency in privately rented homes.
This includes a proposal to raise the minimum property EPC rating to C for all new tenancies by 2025, and for all existing tenancies by 2028.
“As one of the UK”s largest buy-to-let providers, it’s important that we support our landlords in making their properties more sustainable and energy efficient,” said Daniel Clinton, head of The Mortgage Works.
“Buildings are the second largest source of carbon emissions in the UK and small changes, such as adding insulation to pipes, can make a big difference. Landlords are required to ensure their properties have at least an EPC E rating, but in future this could be increased to C.
“By launching Green Further advance, with rates significantly lower than our standard range, we hope this will give landlords the push they need to start making those changes,” Clinton said.
Barclays trims rates by up to 26bps, Nationwide launches broker forum – round-up
The lender is making price reductions on some 75, 80 and 85 per cent LTV purchase and remortgage products that will come into effect on 31 March.
Of those listed, the largest rate cut comes to its two-year fix at 85 per cent LTV that comes with a £999 fee, which is being cut from 2.75 per cent to 2.49 per cent.
The same product at 80 per cent LTV is being cut to 1.97 per cent from 2.04 per cent, while the 75 per cent LTV version is dropping to 1.38 per cent, from 1.5 per cent.
On the latter two deals, Barclays is also cutting rates for existing customers so that they match the rates given on new business.
Meanwhile, Nationwide Building Society and The Mortgage Works (TMW) are launching a broker engagement panel to take feedback and suggestions from advisers.
The initiative is being launched on a three-month pilot with invitation emails being sent out this week to brokers who are registered with Nationwide and TMW.
There is no limit on the number of brokers that can join and the mutual is encouraging as many brokers as possible to sign up through its website.
It said the new platform was likely to become a permanent feature depending on the level of broker engagement during the trial period.
Ian Andrew, director of intermediary relationships at Nationwide, said: “Although we always strive to provide the best possible service, there is always room to improve.
“That is why we are launching our broker connect panel because, by hearing the views and experiences of a wide range of brokers, we can continue to put them at the heart of what we do.
“However, it’s important we hear as many voices as possible from across the industry, which is why we encourage as many brokers as possible to sign up.”
Platform cuts rates up to 90 per cent LTV and TMW releases five-year fixed BTL remo
Rates on the returning mortgages vary from 2.15 per cent for the 80 per cent LTV product with a £1,499 fee to 3.4 per cent at 90 per cent LTV with a £999 fee.
All fee-free products between 80 and 90 per cent LTV now have £1,000 cashback.
The lender has also adjusted rates with two and five-year mortgages at 90 per cent being cut by up to 0.32 per cent and equivalent products at 60 per cent LTV seeing reductions of up to 0.16 per cent.
Meanwhile, the rates on two and five-year fixed mortgages at 70 and 75 per cent LTV have risen by up to 0.26 per cent.
Two and five-year fixes with a £1,999 fee have been brought back for buy-to-let borrowers while rates on fee-free alternatives have been cut by as much as 0.42 per cent.
For switching residential borrowers, two and five-year fixes at 80 and 90 per cent LTV have seen rate cuts of up to 0.25 per cent.
Rates now range from 1.81 per cent for a £1,499 fee-paying two-year fixed product at 80 per cent LTV to 3.72 per cent for a five-year fixed at 90 per cent LTV with no fee.
Products for switching buy-to-let borrowers have seen rate cuts of 0.03 per cent on two-year fixes with a £1,499 fee while equivalent five-year fixes at 60-75 per cent LTV have been reduced by up to 0.04 per cent.
TMW relaunches five-year fixed BTL remortgage
The Mortgage Works (TMW), the specialist buy to let arm of Nationwide Building Society, has relaunched a five-year fixed purchase and remortgage product 50 per cent LTV.
For borrowers seeking a free valuation and either cashback or free legals, the rate is 1.74 per cent.
The incentive-free option has a rate of 1.69 per cent. Both mortgages have a fee of £1,995.
Daniel Clinton, head of The Mortgage Works, said: “As a leading buy-to-let mortgage provider, we look to offer a broad range of mortgages to support landlords.
“By re–introducing our 50 per cent LTV mortgage, we are able to offer our most competitive rates to those landlords, with larger deposits, looking for longer term rate security.”