The Mortgage Works has made several changes to its application process in response to broker feedback, especially for limited company landlords.
The lender introduced a decision in principle (DIP) for limited company purchase and remortgage cases, aiming to speed up lending decisions.
The lender also updated its limited company shareholder policy.
Minority shareholders with a holding of 20% or less are now permitted, with up to four allowed per company and a combined maximum of 25%.
These minority shareholders will not need to be part of the mortgage, sign a personal guarantee, or be credit assessed.
Changes to the DIP process mean brokers and landlords will get decisions faster when buying or remortgaging, with a soft footprint left on the landlord’s credit file at DIP stage.
A hard footprint will only appear once the full application is submitted.
Dan Clinton, head of buy to let mortgages at The Mortgage Works, said: “As one of the country’s leading buy-to-let lenders, we always aim to make the application process as smooth and quick as possible to support brokers and their landlord clients.
“The changes we’re announcing today are based on feedback we’ve been getting from brokers in recent months.
“And, continuing our longstanding support for the limited company market, we’re also making enhancements to our limited company application process to ensure The Mortgage Works remains front of mind for those landlords.”
Nick Mendes, mortgage technical manager at John Charcol, said: “The Mortgage Works’s move to offer a DIP for limited company cases is a practical win for brokers and landlords, giving earlier certainty and helping transactions progress faster.
“The switch to a soft footprint at DIP is a welcome bonus, letting clients test eligibility without denting their credit file.
“Easing the shareholder rules removes friction we often see in company structures and should reduce avoidable referrals.”
Mendes added: “Taken together, these tweaks show a lender listening to broker feedback and backing portfolio and professional landlords with quicker, cleaner decisioning and a process that better reflects how the market operates today.”
