fbpx

Mortgage Advice Experts

Menu
  • Home
  • Videos
  • Mortgage Calculators
  • Residential
    • Mortgage Deals
    • First Time Buyer
    • Remortgage
    • Right to Buy Mortgage
    • Bad Credit Mortgage
    • Self Employed
    • High Income Multiple
    • Help To Buy Mortgage
    • Gifted Deposit
    • Foreign Nationals
    • Debt Consolidation
    • Equity Release
    • Close
  • Buy to Let
    • Buy to Let Mortgage Deals
    • Buy to Let Tips
    • BTL 80% Loan to value
    • Buy to let Remortgage
    • Let to Buy
    • HMOs
    • Buy to Let with Bad Credit
    • Limited Company
    • Portfolios
    • Holiday Lets
    • Ex Pats
    • Rent to Family Memeber
    • DSS Tenants
    • Into Retirement
    • Foreign Nationals
    • Inherited Property
    • Close
  • Bridging Loans
    • Commercial Mortgage Tips
    • Bridging Loans Explained
    • Why use Bridging Finance
    • Bridging Finance Rates
    • Auction Finance
    • Auction Finance Rates
    • Non Standard Commercials
    • Development Finance
    • Close
  • Protection
    • Will Writing Service
    • Probate Services
    • Close
  • Testimonials
  • About Us
    • Why Niche Advice
    • Our Fees
    • Testimonials
    • Blog
    • Join our Team
    • Privacy Notice
    • Terms and Conditions
    • Close
  • Contact Us
You are here: Home / Mortgages / Buy to Let Mortgage / The Mortgage Works 80% buy to let mortgage product review

by Payam Azadi

The Mortgage Works 80% buy to let mortgage product review

The Mortgage Works offers a 80% buy to let mortgage product – but is it any good?

Payam Azadi

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.

Mortgages upGood points about The Mortgage Works 80% buy to let mortgage product

The Mortgage Works have managed to retain a high loan to value in the buy to let market even through the tough times. However, to compensate for the added risk they have charged high, and often extortionate arrangements fees. The high fees did however enable them to offer lower initial rates and until recently this helped reduce the amount of rental income required to qualify. TMW now offers a choice of 80% buy to let products with either 2.5% of the loan (£595 min) or a flat £995 which is has proved more desirable for my customers.

The Mortgage Works service is generally good, and referencing very light with proof of other income sources not necessarily required.

Unusually they will lend to age 90 (at the end of the term). This is particularly useful for retired applicants who have limited earned income from pensions who rely on rent to supplement their lifestyles.

 

mortgages badBad points about The Mortgage Works 80% buy to let mortgage product

The Mortgage Works usually appoints E-Surv to manage their surveys and from my experiences they are very conservative when assessing property values to protect the lender. This however, is not so good for the remortgage borrower who may be hoping for a favourable value to realise the amount they wish to borrow. This particularly prevalent where there is a high loan to value borrowing such as an 80% buy to let mortgage is sought. There is an appeal procedure for down valuations but unless recent comparables of properties being sold at the same or higher price are provided this process does not get out of the blocks. So you need to be realistic and research before applying, and if you are uncertain or pushing the limits other 80% buy to let mortgage lenders would probably be preferable.

This lender does not normally like flats over shops. They will consider ex-local authority flats provided the block does not exceed five storeys but might seek a reduced loan to value of 75% to give them extra comfort. If the property is of non standard this is not the lender for you.

 

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.

View Payam Azadi's profile on LinkedIn

mortgage broker fees

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.

 

Payam Azadi

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. To get in contact with him please click here.

Twitter Facebook Linkedin

Filed Under: Buy to Let Mortgage Tagged With: 20% deposit The Mortgage Works, 80% Buy To Let, 80% buy to let mortgage options, 80% buy to let product review, high loan to value buy to let mortgage, The Mortgage Works 80% buy to let mortgage, The Mortgage Works buy to let, The Mortgage Works review, TMW 80% buy to let mortgages, why use the mortgage works

Proud to be sponsors

Personal Name or Limited Company?

https://www.youtube.com/watch?v=mtzmiikdpdI&t=110s

Contact Us

Our Fees

Why Niche Advice

Mortgage Deals

Tools / Calculators

Latest News / Blog

Free Credit Report from checkmyfile

Try it FREE for 30 days, then £14.99 a month - cancel anytime
Payam Azadi

Time to Fix your Mortgage Express Rosinca Mortgages Buy-to-let Trackers:

It may be time to come off the Tracker rates of Mortgage Express Rosinca Mortgages Is now the right time to switch your buy-to-let mortgage from Mortgage Express (Rosinca Mortgages) variable … [Read More...]

Payam Azadi

Student Let Mortgage for Landlords

Student Let Mortgage products explained for new and existing Buy to Let landlords within the student accommodation sector. How we can help? Access to the Whole of Market Totally Independent from … [Read More...]

Payam Azadi

Buy To Let Foreign Nationals Tier 1 Tier 2 Visa

Personal names and Limited Company Buy To Let Mortgage for Foreign Nationals In this article, I explore the options for foreign national buy to let mortgages.The text is aimed at mortgage … [Read More...]

Choosing the right Solicitor for your limited company buy to let mortgage

Should I take the free legal scheme offered by my mortgage provider?

Mortgage Conveyancing explained

AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.

If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.

Niche Advice Limited is a Credit Broker and does not lend money directly to clients. Niche Advice Limited is authorised and regulated by the Financial Conduct Authority. FCA Number: 750263.

Commercial Buy-to-Let and commercial mortgages are not regulated by the Financial Conduct Authority.

Our Fees

Click here for our fees structure. A full detailed fee plan will accompany all our quotes.

Niche Advice Limited has a commercial arrangement under an affiliate programme with Check My File and is remunerated for referrals.

Terms and Conditions

If you wish to register a complaint, please write to us on the details below or call us on: 020 7993 2044.

Correspondence Address: Niche, Unit F6, The Addington Business Centre, Vulcan Way, New Addington, Surrey CR0 9UG.

A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234567.

Site Terms and Conditions
Customer Privacy Notice

niche youtube

CONTACT NICHE ADVICE
Tel: 020 7993 2044

Registered Office: Niche, Unit F3, The Addington Business Centre, Vulcan Way, New Addington, Surrey CR0 9UG. Registered in England & Wales. Company registration number: 06599033.

Members of The Financial Intermediary & Broker Association - Number SBS36389

logo

© 2022 · Niche Advice Limited · Site Designed by Niche Advice Design Team

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}