Not yet registered? Create a OverBlog!

Create my blog

All about: The Mortgage Works (TMW)

The Mortgage Works is a specialised mortgage lender owned by the Nationwide which offers buy to let mortgages for first-time landlords, remortgage packages and mortgages in relation to property portfolios. The Mortgage Works also makes products available through professional intermediaries, and has developed a range of mortgage products exclusively for those intermediaries.

Buy to let mortgages

Buy to let mortgages are offered at fixed or variable rates of interest. The current buy to let rates may be found on the TMW Direct website. Fixed rate mortgages are available for the first one to five years of the mortgage term, the interest rate then reverting to the Mortgage Works Managed Rate, a variable interest rate. Alternatively, a one or two year base rate tracker mortgage is available, the interest rate reverting to the Mortgage Works Managed Rate at the end of the tracker term. Borrowers should be aware that an arrangement fee may apply to some of these fixed rate mortgages, typically 2.5% to 3.5% of the amount borrowed. Generally, a maximum of 65% of 75% of the value of the property may be borrowed, depending on the terms of the mortgage. An early repayment charge would generally apply during the fixed or tracker rate period. Some mortgage deals may offer benefits such as a free standard valuation, free standard legal fees or cash back. The term of a mortgage from The Mortgage Works may be from 5 years to 35 years. Generally, capital repayments of 10% of the mortgage may be made in a year without incurring any penalty. People applying for mortgages must be residents in the UK. The maximum loan to value per property is 80% for properties up to £350,000; 65% for loans above this amounts up to £1 million; and 50% loan to value for properties above this amounts up to £1,500,000. The amount that may be borrowed is linked to the rental income from the property. The required rental income ratio is generally 125%, meaning that the projected rental income from the property must be 25% higher than the mortgage payment. For property that is in multiple occupation, the projected rental income ratio must be 150%.

Let to buy mortgages

A let to buy mortgage may be taken out by a home owner who is moving to another location and intends to remortgage the existing home as a buy to let property. The home may be let out and a loan arranged on the basis of the amount of projected rental income. The mortgage application will only be accepted where there is a simultaneous purchase of a new residential property. A maximum of 75% of the value of the home may be borrowed.

Same category articles Banking

Types of air miles credit card

Types of air miles credit card

Are you travelling by plane frequently? Do you like the idea of earning air miles every time you travel or shop with your credit card? In any case, read the following article and find out all the interesting facts that you need to know about the two different types of air mile credit cards.
How to get a fast cash personal loan

How to get a fast cash personal loan

People usually need fast cash personal loans when they are in an emergency which requires immediate cash. It could be because you want to pay a medical bill or a utility bill. The reason varies from one person to another. Getting a short-term personal loan is however very easy and it is possible to get your cash within 24 hours.
All about: Citibank cards

All about: Citibank cards

Citibank is a major international bank and part of Citigroup, a giant financial services organisation. It offers a wide variety of financial products including insurance, investments and credit cards. This article describes the popular personal Citicards.
Cash till payday: The Facts

Cash till payday: The Facts

Short-term loans, sometimes for a matter of days, have become a popular way for people to make up a cash shortfall before an end of month pay check clears. These small loans can be applied for online, approved in a matter of minutes and are in the recipients bank account within a few hours. Despite its popularity and wide marketing appeal, there are some problems with this system which offset the obvious short-term advantages.