Mortgage Lending criteria
Product
4.99% Fixed to 31/05/2013
Notes: We have not verified this information with the lender. Ask us to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key features Illustration. Please ask your broker for a Key features Illustration
back to buy to let best buys
back to buy to let best buys
Product
4.99% Fixed to 31/05/2013
Advances
Upto £350,000 70% LTV (Rmg 70%)
Upto £1,000,000 65% LTV (Rmg 65%)
Upto £1,500,000 50% LTV (Rmg 50%)
Notes
Mortgage is Portable, Mortgage is Flexible, 10% Overpayments allowed per year.
Your mortgage is portable. This means that if you move house and we are able to offer you a new mortgage.
You can transfer the amount you owe on the same terms without having to pay any early repayment charges. If
you carry forward less than the amount you owe, any early repayment charge payable will be calculated on the
difference. The decision whether or not we will be able to offer you a new mortgage will depend upon the
circumstances at the time including the type of property you want to buy, you personal circumstances and the
amount you want to borrow.
- Mortgage is NOT for First time buyers
Light Refurbishment - classified as a Buy to Let rental property which will benefit from minor improvements to be
carried out within 3 months of completion and prior to letting.
Valuation - will be completed in the first instance and value will be assessed on current and after works basis.
Re-inspection - will be required once the work has been completed to confirm if the retention can be released.
Retention - A full retention amount will be held, to a maximum of £25k which can be released on completion of
the works, confirmed by a re-inspection of the property, £100 payable by the customer.
Minimum Retention - £2,000
Maximum Retention - £25,000
Further Advances: May be considered after a minimum of six full consecutive monthly payments have been
made.
Further advances subject to revaluation in all instances.
Please see income section for details of rental income requirements specific to this product.
These products are not available for further borrowing for existing customers utilising The Mortgage Works’
portfolio proposition only (where LTV is averaged across a portfolio of two or more properties).
Further Advances for existing multi property portfolio customers remain available please see TMW product
guide/lending criteria for details).
An overpayment is a payment that is in addition to the minimum payment you must make each month. The
minimum payment is shown in Section 6.
You can make lump sum repayments of capital up to 10% of the mortgage, in each 12 month period from the
date the mortgage starts until the end of the redemption tie in period without having to pay an early repayment
charge. Amounts above this are subject to an early repayment charge (as detailed in Section 10).
After this date there are no restrictions on the amounts that you can overpay.
If you make an overpayment the amount you owe us will be reduced immediately, and the amount of interest
you pay, will be reduced from the first day of the following month.
First time landlords wishing to remortgage their existing residential property for the purposes of letting will not be
accepted. First time landlords must be current owner occupiers (with or without a mortgage) purchasing a new buy to let property.
The property must be in England, Wales or mainland Scotland.
Buy to Let : Accepted
Capital Rest Period : Monthly
Repayment Types
Repayment Yes
Endowment Yes
PEP Yes
Pension Yes
Interest only (no RV) Yes
With Profits Yes
Unit Linked Yes
ISA Yes
Split Repayment Yes
Fees
Arrangement : 3.50% of loan Can be Added
Booking : None
Early Repayment Charges
5% of loan to be paid until 31/05/2013, 10% capital repayments allowed per year without penalty
Higher Lending
None
Valuation
Basic:
upto £100,000 - £365
upto £150,000 - £390
upto £200,000 - £430
upto £300,000 - £490
upto £400,000 - £555
upto £500,000 - £615
upto £600,000 - £695
upto £700,000 - £755
upto £800,000 - £795
upto £900,000 - £865
upto £1,000,000 - £910
upto £1,250,000 - £1125
upto £1,500,000 - £1275
upto £1,750,000 - £1475
upto £2,000,000 - £1675
Homebuyers:
upto £100,000 - £450
upto £150,000 - £535
upto £200,000 - £620
upto £300,000 - £720
upto £400,000 - £820
upto £500,000 - £930
upto £600,000 - £975
upto £700,000 - £1035
upto £800,000 - £1115
upto £900,000 - £1200
upto £1,000,000 - £1275
Min Valuation £50000
Minimum Arrangement Fee £595 where Arrangement Fee applicable
Valuation fee (where applicable) includes £150 application fee.
For properties valued over £1 million please refer to Lender for the valuation fee.
Where multiple properties are being financed simultaneously (for existing customers only), only one application
fee is payable. Where a product offers a free valuation, no payment is required. Where a product offers a
refunded valuation fee, this will be refunded on completion less the £150 application fee.
We will instruct our solicitors to act on our behalf in the following circumstances:
1. Application in a company name
Our solicitors fees will be payable by the applicants.
Minimum arrangement fee is £595.
Re-Inspection Fee - £100 payable by customer.
Higher Lending Charges are calculated on the difference between 75% of the value of your home and the
amount you wish to borrow. Added fees will not be included in this calculation.
Lenders Conveyancing Fee - £100.00 Payable on completion. A non refundable fee to your conveyancer for
acting on behalf of The Mortgage Works (UK) plc payable before the mortgage starts. The figure quoted here is
an estimate - the total fee for conveyancing may be higher. You should ask your conveyancer for further details.
Insurance Admin - £30.00 Payable on completion.
Sealing Fee - £145.00 Payable on redemption.
Telegraphic Transfer - £35.00 Added to loan.
Acceptable Property Types
Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Yes
Studio Flat Refer
Flying Freehold Refer
Thatched Yes
Timber Framed Yes
Concrete No
Agricultural Tie Refer
Flat Over 4 Storeys Refer
Listed Building Refer
Not Accepted
New Build acceptable. Where more than one property is held, rentals and LTV ratios may be aggregated.
Should a multiple property landlord wish to purchase or remortgage single properties to The Mortgage Works,
evidence of portfolio ownership is required.
Properties over commercial premises may be considered (excluding restaurants, bars, takeaways, launderettes
or pet shops), please refer to lender.
Ex-council properties may be considered, if in a building not exceeding 5 storeys with a maximum LTV of 75%
Studio flats may be considered, please refer to lender.
Properties with agricultural ties may be considered, please refer to lender.
New built flats which have been built in the last 12 months not allowed, however, new build houses are allowed.
Any new build application is subject to a valuation on a second hand re-sale basis excluding any notional new
build premium.
Purpose built studio / bedsit flats
Provided the internal floor area is not less than 30sq. meters and they contain a separate bathroom and
separate kitchen.
Properties let on a multi-tenanted basis are acceptable provided that:
The property is not occupied by 5 or more people, comprising 3 or more households (being unrelated persons)
The property is not subject to HMO licensing
The property contains no more than four habitable storeys and no more than one kitchen
N.B. Rental cover will be assessed on the basis of rental value as a single family dwelling.
Accepted Locations : England, Scotland, Wales
Requirements
Bank Statements No
At Least 3 Months Pay Slips No
P60 No
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References No
Insurance
Buildings Conditional
Conditions On Loan
Min Loan £25,001/Rmg £25,001
Max Loan £1,500,000/Rmg £1,500,000
Max Portfolio of BTL Loans none
Min Age 21 years
Max Age 90 years
Min Term 5 years
Max Term 35 years
Initial advance – Up to 70% of the current value will be advanced. Once works are completed 70% of the after
works value to a maximum of £25k can be released subject to successful re-inspection.
Applications with more than two applicants not accepted. Guarantors are not accepted. Properties where a
semi-commercial valuation is required are not accepted.
Maximum aggregate loan at 70% LTV: £1.5m. Maximum aggregate loan at 65% LTV: £5m
Subject to the max loan per property, customers may borrow up to £350k at 70% LTV - any further borrowing in
excess of £1.5m is subject to a maximum LTV of 65% on that further borrowing only.
(N.B. Portfolios held with TMW prior to 21st March 2008 are not affected)
Foreign nationals must be resident in the UK for at least three years prior to application and must have
permanent right to reside.
Foreign nationals must have a UK bank account.
Expatriates are not accepted.
New business for Limited Companies not accepted. Existing limited company customers may continue to
operate their accounts, including further borrowing, subject to lending criteria and product availability.
Buildings insurance, to cover the full cost of rebuilding your home.
You can arrange this through the lender or make your own arrangements. If you make your own arrangements
A non-refundable Insurance Administration Fee of £30 will be deducted from the mortgage amount sent to our
conveyancers at completion. This fee is not charged if the property is leasehold.
Foreign Citizens Refer
Ex-Patriates Not Accepted
Income Multipliers
Based on Income > 0
Refer to rental income calculations
Min months in current position none
Min months in continuous service 12
Min no. of years accounts 2
Average years taken to calculate income 1
Will consider declining profit Refer
Outgoings
Rental income based on pay rate x 125%.
No proof of income required. The valuer must confirm that the gross monthly rent (based on an unfurnished
figure) conforms to the rental cover required using an interest-only figure.
Personal income is not included in the calculation of maximum loans for TMW buy to let. There is also no
minimum personal income requirement.
LTV and Rental Cover - The maximum LTV is 70% and rental cover would remain at 125% and would be based
on the property valuation and rental assessment after works.
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education Taken into account
Extra Income:-
Other Income - Guaranteed Add 100% to income before multiply
Other Income - Regular Add 50% to income before multiply
Other Income - Irregular No
Investment Income Add 100% to income before multiply
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension No
Car Allowance Add 100% to income before multiply
Remortgage Max LTV Max% increase
Capital Raising Refer to Lender
Home Improvements 70%
Debt Consolidation Refer to Lender
School Fees 70%
Holidays/Cars 70%
Buy Other Property 70%
Business Purposes Refer to Lender
Divorce Settlement 70%
Unencumbered 70%
Remortgages: only acceptable if the property has been owned for a minimum of 6 months.
Maximum LTV for capital raising, debt consolidation and business purposes vary by product, please refer to lender.
Adverse Credit
CCJs : Not Acceptable
Defaults : Not Acceptable
Arrears : Not Acceptable
Bankrupt : Not Acceptable
Current IVA : Not Acceptable
Repossession : Not Acceptable
ENC
- The Lender will judge customers with previous or existing adverse credit in a flexible manner and every case
will be judged on its individual merits, along with the customer's ability to keep up repayments on the mortgage,
taking into account his/her existing liabilities.
- The Lender will consider cases of financial difficulty and mortgage arrears sympathetically.
- The Lender follows the general principles of the Council of Mortgage Lenders' Statement of Practice on
Handling Arrears and Possessions, including:
a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the
arrears, consistent with both your interests and those of the Lender.
b) possession of your property will be sought only as a last resort when attempts to reach alternative
arrangements with you have been unsuccessful
