The Mortgage Works offers a 80% buy to let mortgage product – but is it any good?
The Mortgage Works (TMW) are one of the main UK buy to let lenders in the UK and have had an 80% buy to let mortgage product out in the market for some time.
Their product is only available to professional landlords which means you must have got the least one buy to let property and can prove the rental income for over six months. They also insist that you need to be owner occupier which means you need to be living at your current residential home.
Unlike some buy to let 80% products it is available for remortgages as well as purchases.
The 80% buy to let product is limited to a maximum mortgage amount of £350,000. The loan to value (LTV) then drops significantly to 65% for loans £350,001 upwards, which means a deposit or equity of 35%.
Example of current TMW 80% buy to let mortgages
Based on a purchase price of £200,000 and an interest only mortgage of £160,000.The costs quoted assume that the lender’s fee for arranging the mortgage are added to the loan.
There is a sealing fee of £145 which is payable on the repayment of the loan and a telegraphic transfer fee of £35. The main early repayment charges are 5% of the amount repaid in the fixed period. 10% of the mortgage balance can be overpaid during the fixed period without the main early repayment charge applying.
Product 1: Percentage Arrangement Fee
Initial pay rate 4.14% (APR 5.2)
Valuation Fee £430 / Arrangement fee £4,000 (2.5% of £160,000 mortgage)
Fixed at £565.92 per month until 31/10/2015. After this period the mortgage will revert to the lender’s variable rate at the time. Based on today’s prices this would be £682.11 per month.
Product 2: Flat Arrangement Fee
Initial pay rate 4.99% (APR 5.2)
Valuation Fee £430 / Arrangement fee £995
Fixed at £669.62 per month until 31/10/2015. After this period the mortgage will revert to the lender’s variable rate at the time. Based on today’s prices this would be £669.62 per month.
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Good points about The Mortgage Works 80% buy to let mortgage product
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Bad points about The Mortgage Works 80% buy to let mortgage product
For the full information on products and rates and fees please complete the enquiry form on the right-hand side of this page or alternatively call us on T: (020) 7993 2044.
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.
DISCLAIMER
The views expressed in this article are based on my own personal general opinions and experiences, and they are not necessarily shared by Niche Advice Limited or other Mortgage Brokers. Rates correct as of 11/09/2013.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.
