TMW Updates Lending Rules for Company Landlords

Leading buy-to-let mortgage lender The Mortgage Works (TMW) has overhauled lending rules for property companies.

The lender has scrubbed the need for all mortgage applicants to be company directors.

Now, TMW accepts applications from limited companies where one applicant is a shareholder with a minimum 20 per cent stake in the company.

The lender also confirms acceptance of intercompany loans as a deposit option for buy-to-let mortgage applications from limited company landlords.

Damian Thompson, director of landlord at TMW, said: "We are making this change to address the ever-evolving needs of limited company landlords and their requirements on company structures."

Meanwhile, TMW is offering market-challenging rates to buy-to-let borrowers, including companies.

Buy-to-let lenders cut rates

The cheapest deal is a 3.14 per cent two-year fix for up to 65 per cent loan-to-value (LTV), reverting to 8.1 per cent variable in May 2027.

Other current deals include 3.29 per cent fixed for two years, reverting to 8.99 per cent variable in May 2027, at 75 per cent LTV, while a second two-year fix comes in at 3.34 per cent, reverting to 8.48 per cent variable in May 2027, at 65 per cent LTV.

Each loan has a £145 admin charge and a 3 per cent arrangement fee.

TMW - the buy-to-let brand of Nationwide - has not been the only landlord lender to cut mortgage rates in recent weeks.

HSBC has reduced buy-to-let packages, including two-year fixed-rate purchase and remortgage products at up to 75 per cent LTV. Five-year fixes at 60 per cent LTV were also cut.

Best of the rest

Molo Finance has two 75 per cent LTV two-year fixes - one at 6.54 per cent and the other at 7.74 per cent. Both revert to 8.04 per cent variable after the fixed-rate period. Both have a £150 booking fee, an admin charge of £100 and a variable arrangement fee of between 1.75 per cent and 2.75 per cent, depending on the loan-to-value borrowed.

CHL Mortgages has buy-to-let rates that lead the market, starting with a 65 per cent LTV deal at 2.81 per cent fixed for two years, but the low interest rates are tempered by a 7 per cent arrangement fee, a £90 admin fee and a £150 booking fee.

The interest rate reverts to 9 per cent variable when the fix expires. At 65 per cent LTV, the two-year fix is 2.83 per cent, and at 70 per cent LTV, the rate is 2.93 per cent.

Zephyr Homeloans has a 75 per cent LTV buy-to-let loan at 2.99 per cent fixed for two years, which reverts to 9.4 per cent variable at the end of the term. The booking fee is £200, and the arrangement fee is 7 per cent of the loan.

Birmingham Midshires has a 3.06 per cent deal fixed until June 2027 - a month longer than most others. Reverting to 8.84 per cent variable at the end of the term, borrowers can ask for up to 65 per cent LTV. Arrangement fees are 3 per cent of the loan.