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The Mortgage Works reduces rates on buy-to-lets

Amanda Jarvis

January 11, 2005

All the changes highlighted in this press release are effective from Monday 10 January.

Buy to Let Products – Rate Changes
– 2 Year Fixed Rate – NEW RATE 5.59%
– 3 Year Fixed Rate – NEW RATE 5.59%
– 5 Year Fixed Rate – NEW RATE 5.59%
– Remortgage 2 Year Fixed – 5.89%*
– Remortgage 3 Year Fixed – 5.84%*
– Remortgage 5 Year Fixed – 5.79%*
*now offer £250 cashback and a refunded valuation

Buy-to-let Products – Criteria Changes
– Improvement to the nominal rate used for rental calculation on 3 and 5 year fixed rate products (purchase and remortgage) from 5.99%, to the pay rate, currently 5.59%.
– Maximum loan on Buy to Let business has increased from £3million to £5million.
– New tier introduced on Buy to Let rental calculations:

Maximum LTV Rental income ratio required
80% 125%
75% 120%
NEW 70% NEW 115%
65% 100%
50% Non Status

Commenting on the changes, Paul Howard, Portman Group Intermediary Sales said, “These are important changes which make our range of Buy to Let products great value for borrowers and first choice for mortgage intermediaries. The Mortgage Works has strong growth ambitions for 2005 and these new schemes signal our intentions in the buy to let market.”


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