The Mortgage Works (TMW) has announced a series of changes designed to help professional landlords expand their portfolios, including higher loan limits and a refined approach to affordability assessments.
From today, the lender has increased its maximum loan per property to £2m for buy-to-let and limited company applications (up from £1.5m), and to £1m for let-to-buy cases (previously £500,000).
The overall borrowing cap has also risen to £7.5m, reflecting TMW’s ambition to better support landlords with larger portfolios.
As part of updated affordability measures, The Mortgage Works will now apply a split Interest Cover Ratio (ICR) policy for portfolio applications.
Properties held within a limited company structure will be assessed at an ICR of 125%, while those held personally will remain at 145%.
The existing stress rate of 4.75% and the maximum aggregate loan-to-value (LTV) of 75% remain unchanged.
Dan Clinton, head of buy-to-let mortgages at The Mortgage Works, said: “This is the latest in a series of enhancements we’re making to our landlord offering.
“Brokers have been highlighting the need for these changes, and we have listened and delivered.
“As one of the country’s largest buy-to-let providers, it’s important we support landlords across their entire portfolio, and these enhancements will enable us to do just that.”
Nick Mendes, mortgage technical manager at John Charcol, added: “The Mortgage Works’s increase to maximum loan sizes and refinement of its aggregate portfolio policy are a clear show of support for professional landlords.
“Higher caps give experienced investors more flexibility to fund and refinance larger assets, while applying a 125% ICR to limited company holdings reflects prevailing market practice and should improve case certainty for well-run SPVs.
“Overall, these are pragmatic changes that align affordability and capacity with real-world portfolio management, signalling continued commitment to the professional buy-to-let market.”
