This means the product range will now be tiered at 65%, 75% and 80% LTV.
A new Lifetime Variable product will also be launched at 65% LTV, with a £995 fee.
At the same time, TMW is also introducing new tiered follow-on rates – the rates loans revert to after the end of a fixed term benefit period – at 65%, 75% and 80%. These are priced at 0.50% below the corresponding stress rate, to align with the recently announced tiered stress rates.
TMW’s new follow-on rates will start from 4.49% at 65% LTV, which will be amongst the most competitive in the marketplace.
The change to follow-on rates will only apply to customers taking new products from 20 November 2014. The majority of customers choosing a product with TMW will either benefit or see no change.
Henry Jordan, managing director of TMW, said: “Structuring our products, follow-on rates and stress rates by LTV is designed to create consistency and reflects our risk-based approach to lending. Implementing a lower follow-on rate relative to the stress rate provides an extra safeguard for landlords to protect rental cover in the event of future base rate rises.
“The extension of 60% LTV products to 65% is great news for both experienced and first time landlords, who can now access rates from as low as 2.39%.”
TMW recently announced a stress rate of 5.49% on applications between 65% and 75% LTV. Other stress rates will remain unchanged, as will those for fixed rate terms of five years or more.