Buy-to-let lender The Mortgage Works is returning to 80% LTV lending, but only for properties with an energy performance rating of C or above.
The LTV increase will apply to its standard buy-to-let, let-to-buy, large portfolio and limited company range from tomorrow.
The lender says it is restricting high LTV lending to properties with the best energy ratings: “to balance the need to support a key segment of the BTL market, whilst recognising future ambitions across the private rental sector to achieve more energy efficient homes”.
The government is working towards requiring all private rented properties to reach an EPC rating of C or above by 2028.
TMW’s new 80% LTV deals include:
- Two-year fixed rates starting from 2.49% with a 2% fee
- Five-year fixed rate starting from 2.99% with a 2% fee
The deals are available for purchase and remortgage and borrowers can also choose alternative rate and fee combinations.
Limited company rates start from 2.79% for a two year fixed and 3.49% for a five year fixed with a 2% product fee.
A government consultation is looking to increase the energy performance
TMW is also reintroducing a range of buy-to-let mortgages with no product fees. The new remortgage rates start from a competitive 1.99% at 65% LTV with free valuations and standard legals.
The Mortgage Works head Daniel Clinton says: “We are one of the UK’s largest buy-to-let lenders and we always look to offer a wide range of mortgages for landlords.
“We are pleased to return to lending at 80% loan to value, giving further options for those with a smaller deposit.
“Buildings are the second largest source of emissions in the UK and we want to continue to do our bit to help tackle climate change.
“With impending regulation on the horizon affecting minimum EPC standards across the PRS, we are taking pro-active measures through our lending proposition to support the transition.
“Providing BTL mortgages on A-C rated properties at higher LTVs is a prudent step and follows on from the recent launch of our first ever green deal for existing customers seeking to make energy improvements.”
