Nationwide for Intermediaries

The following is a summary of the principal lending policy, other rules may apply. You can also download our lending criteria as a pdf. Please see Guarantor Lending Criteria for Guarantor mortgages.

• General criteria
• Buy to Let
• References checklist
• Proof of source of deposit
• Valuation fees
• Specialist security valuation fees
• Product switches
• Valuation policy
• Solicitors
• Products offering free standard valuations

General criteria

Applies to all products, unless otherwise stated.

Term
Min: 5 years - Max: 35 years.

Portability
All our mortgages are portable so if your client simultaneously completes a mortgage for the same or greater amount then they can keep the interest rate they previously had for that portion of the new mortgage without having to pay the early repayment charge. This is subject to meeting the Company’s current lending criteria at the time of obtaining the new mortgage.

Property substitution
Additional/substituted properties will be underwritten based on the rates at the date of receipt and do not benefit from the original rates.

Loan purpose
Purchase or remortgage in England, Wales and mainland Scotland. Capital raising for any legal reason considered.

Capital repayment allowance
10% capital repayment per year without penalty. The capital repayment allowance cannot accrue year on year. The allowance is not available if the whole loan is being repaid or security released.

Definition of income
Employed: 100% of the basic salary, weighting allowance, mortgage subsidy, housing allowance, car allowance, 50% of overtime, bonus and commission and
permanent secondary employment.

Self-employed: Based on net profit average of last two years. The net profit shall be divided by the proportion that the borrower owns of the business. Projection of net profit is not acceptable. Company Directors - salary + dividends.

Remortgages
Only acceptable after property has been owned for a minimum of 6 months.

Further advances
May be considered after a minimum of six full consecutive monthly payments have been made. Further advances subject to revaluation in all instances. The minimum amount for further advances is £2,500 (unless otherwise stated).

Purpose built flats and studio flats
The internal floor area must be no less than 32.5 square metres and they must contain a separate bathroom and separate kitchen.

Applicants

• Applications with more than two applicants are not accepted.
• Applications where a guarantor is to be a party to the mortgage are not accepted on Buy to Let mortgages.
• Applications where the mortgage introducer is also an applicant are not accepted.

Property development
Applications from property developers (a person who owns 25% or more of a business whose principal activity is property development) are not accepted for Buy to Let or owner occupied mortgages.

Residency

• All applicants must be resident in the UK.
• Applicants with an immediate previous address abroad in the last three years are not accepted.
• Foreign nationals must be resident in the UK for at least three years prior to application and must have permanent right to reside.
• Foreign nationals must have a UK bank account.

New business application submission
All new business applications should be submitted via TMW Online. Selected exceptions apply. Please see TMW Online for details.

Buy to Let Mortgages

Age
Min: 21 Max: 90 at loan maturity.

Minimum loan
£25,001 (unless otherwise stated); minimum property value £60,000.

Maximum overall loan per customer

• 70% LTV: £1,500,000
• 65% LTV: £5,000,000

N.B Portfolios held with The Mortgage Works prior to 21 March 2008 are not affected.

Maximum LTV per property

(unless otherwise stated)

Should a multiple property landlord wish to purchase or remortgage a single property to The Mortgage Works, the evidence of portfolio ownership may be required (e.g. completion statement combined with a current rental agreement).

Rental income

• Fixed rates: Based on product pay rate or 4.99%, whichever is higher.
• Tracker rates: Based on product pay rate +0.5% or 4.99%, whichever is higher.
• Stepped tracker rates: Based on the highest year pay rate + 0.5 or 4.99% whichever is higher.
• Variable rate: Based on product pay rate + 0.5% or 4.99%, whichever is higher.

Conventional income multiples are not used. The valuer must confirm that actual gross monthly rent (based upon unfurnished figure) conforms to the rental income ratio using a monthly interest only calculation.

*Assessed on multi-tenanted basis.

Multiple self-contained units under a single property title
Not accepted.

TMW multi property portfolio proposition
TMW’s multi property portfolio proposition (for example, where rental income and LTV is averaged across the portfolio) is not available for new customers. Existing multi property portfolio customers may continue to operate their accounts on this basis, including further borrowing, subject to lending criteria. Existing multi property portfolio customers may continue to add properties to their portfolio provided that each new property is self supporting for both LTV and rental cover, subject to selecting a product from the multi property range.

Houses in Multiple Occupation (HMO)
Properties let on a HMO basis are classified as:

• The property occupied by 5 or more people, comprising 3 or more households (being unrelated persons)
• A property subject to Houses in Multiple Occupation licensing
• A property containing no more than four habitable storeys and no more than one kitchen
• Properties consisting of more than one self-contained unit under a single title are not acceptable
• Rental cover will be assessed on a multi-tenanted basis up to 65% LTV
• Experienced landlords only
• Let to Buy, Light Refurbishment, and Limited Company applications are not accepted
• All properties will be subject to an Assured Shorthold Tenancy agreement of a minimum of 6 months, maximum of 12 months
• Single and multiple tenancy agreements accepted (multiple tenancy agreements - maximum 4 tenants)
• A Specialist Security valuation will be required

Loan purpose
Purchase or remortgage in England, Wales and mainland Scotland.

First time landlords
Buy to Let new business products are available for first time landlords (for purchase only), classified as applicants who have not owned and let a buy to let property for the last six months.
Subject to:

• Max 70% LTV (customers purchasing over 65% LTV must choose from the Let to Buy range).
• First time landlords must be owner occupiers (with or without a mortgage)
• The applicant(s) must have owned their residential property for at least 6 months at the time of application
• Loan purpose: to purchase a new buy to let property

Let to Buy
First time landlords, classified as applicants who have not owned and let a buy to let property for the last six months, remortgaging their existing residential property as a buy to let must choose from the Let to Buy product range.
Subject to:

• Max 70% LTV
• The applicant(s) must have owned their residential property for at least 6 months (with or without a mortgage) at the time of application
• Loan purpose: to remortgage their residential property into a buy to let property
• Applicant(s) may let their current residential property without purchasing a new one

Light Refurbishment
Classified as a Buy to Let rental property which will benefit from minor improvements to be carried out within 3 months of completion and prior to letting, subject to selecting a product from the light refurbishment range.

• Initial Advance – Up to 70% of the current value will be advanced. Once works are completed 70% of the after works value to a maximum of £25,000 can be released subject to successful re-inspection.
• Retention – A full retention amount will be held, to a maximum of £25,000 which can be released on completion of the works, confirmed by a re-inspection of the property, payable by the customer.
• Minimum Retention – £2,000
• Maximum Retention – £25,000
• Valuation – Will be completed in the first instance and value will be assessed on current and after works basis.
• Re-inspection – Once the work has been completed as required, a re-inspection, payable by the customer, will be needed before retention monies can be released.
• Rental cover will be based on rental assessment after works.
• TMW reserves the right to withold the retention amount if the works have not been carried out within 3 months.

Limited companies
We will only lend to Limited Companies whose sole purpose is the purchase and letting of residential property and who must be registered in the UK. This includes England, Wales, Scotland, and Northern Ireland.

• Max 70% LTV
• Applications with more than 5 applicants are not accepted 
• We do not lend to overseas companies
• We will not accept applications from property developers or builders
• Personal guarantees are required in all cases
• No bearer shares and beneficial owners must be disclosed and identifiable
• Each loan must be on a single account basis and self supporting for LTV and rentals
• Layered companies are not permitted
• Applications for HMO properties not accepted
• Limited Company Light Refurbishment applications not accepted
• We will instruct our solicitors to oversee the transaction, the fee of £299 (+ VAT) will be payable by the customer
  
  New build Buy to Let applications
  The Mortgage Works will accept applications for new build houses and bungalows, but not on flats built or sold for the first time in the last 12 months.
  
  Property concentration exposure limits
  The Mortgage Works will consider its overall exposure by applicant, geographical area and development when assessing applications. The maximum number of securities that can be considered per development is

• 1-3 units: 1 unit
• 4-50 units: 25%, rounded down to the nearest unit
• 51-80 units: 12 units
• More than 80 units: 15%, rounded down to the nearest unit

These exposure limits are per applicant and include securities mortgaged to other lenders.

Sale and rent back
It is not permitted for the vendor to remain as a tenant in the property or to retain an interest in the property.

References checklist

Buy to Let
We do not require verification of income but as part of our underwriting process we may ask for it.

• Proof of income for employed and Self employed - not required.
• Proof of Mortgage/Rent payments - not required.
• Bank Statements - not required.

Proof of source of deposit (examples)

Gift from a UK donor
Signed letter - including address - from benefactor stating monies are non-refundable. Further evidence may be requested. Insolvency Act Indemnity Insurance may be required.

Gift from a non-UK donor
If the applicant has received all or part of the deposit as a non-repayable gift from a donor outside of the UK then a letter of confirmation is required from the donor together with proof of the donor’s source of funds. 

If funds have been in the donor’s account for less than three months further information is required and must be obtained. The letter of confirmation must show the donor’s address and must be signed. The Mortgage Works may ask for further information on the source of the donor’s funds if deemed necessary after reviewing the documentation held in conjunction with the mortgage application and product requested.

Savings
Copy of bank statement, e.g. bank/building society savings account, ISA (for non-UK residents BTL applicants where funds have been in the account for a period of less than six months we require proof of their origination).

Valuation fees

† The total amount payable includes a £150 application fee. For existing customers using our Multi Property Portfolio Buy to Let proposition, if more than one property is being financed simultaneously, the £150 is paid only once. For example the second valuation fee is £215 for property values up to £100,000.

Product switches

Pre-completion product switches require our underwriters’ prior approval. Switch fees of £350 may be charged.

Valuation policy

Where a valuation for mortgage purposes is subcontracted to a panel of chartered surveyors, we make the same charge for the mortgage valuation or Homebuyers survey and valuation in accordance with the above table as we do when using a staff valuer.  The difference between the table charge, excluding application fee, and that which the company pays the panel valuer covers The Mortgage Works’ administration costs.

• Re-valuation fees for further advances - 50% of the valuation fee (excluding application fee), rounded down to the nearest pound.
• Re-inspection fee – £100.
• Transcribe fee – £210 (includes a £150 application fee).

Transcribed valuations
Transcribed valuations are not normally acceptable, except in Scotland where no fee is payable and the following conditions will apply:

• The valuation must have taken place prior to submitting the application.
• The valuation must have taken place in the last three months.
• For Buy to Let valuations, the report needs to include a rental assessment.
• For Scottish Light Refurbishment applications, transcribed valuations will not be accepted - see below. 

Scotland
A restricted panel of valuers are acceptable for purchases of property in mainland Scotland; please contact us for details.

• For Scottish Light Refurbishment applications, transcribed valuations will not be accepted. Scottish applicants will require a full valuation to be carried out by TMW at the outset. The cost of the valuation will be payable by the customer and will be based on the current TMW standard valuation fee scale.

New builds
New build properties (where acceptable): Valuers will be instructed to provide a valuation of the property based on a second hand value.

House in Multiple Occupation
Houses in Multiple Occupation require a Specialist Security valuation.

Other information
The valuation report and figures therein will not be challenged. In the case of BTL applications, we will apply the lower of passing rent or estimated rental value as given by the valuer.

Estimated rental value will be based on market rent for the property in the locality allowing for its most appropriate use.

If the valuation has been carried out and the property has been found to be of unsuitable security, the valuation fee will not be refunded.

Specialist Security valuation fees

(Including £150 application fee)

Solicitors

We will instruct our solicitors/conveyancers to oversee the transaction if the application is in a company name, a fee of £299 plus VAT is payable.

Limited Companies: If a case is deemed to be particularly complicated, higher fees may apply.

Our solicitors'/conveyancers' fees will be payable by the applicant(s).

Solicitors/conveyancers with less than two partners will not be eligible to process applications for The Mortgage Works unless they are on our approved panel.

A conveyancing fee of £50 will be charged where a client chooses to use a sole practitioner.

Additional product features

The below features are only available for single property applications on selected products, subject to availability.

Products offering free standard valuations:

• Free standard valuations are available to a maximum property valuation of £500k. Valuations in excess of £500,000 will be subsidised by £615.
• Not available for properties in Scotland.