Changes to our rental calculation and maximum LTV

From Wednesday 11 May 2016, we're making changes to our affordability calculation and maximum LTV.

In order to help landlords safeguard positive cash flow, as future tax relief changes begin to phase in from next year (April 2017), we're making the following changes:

  • Rental coverage requirement increased from 125% to 145%.
  • Reduction of maximum LTV from 80% to 75%.

Our maximum loan will continue to be calculated using the higher of either the stress rate or product pay rate.

To assist you and your clients, we're including information about the changes to taxation on our intermediary and customer facing websites. The dedicated page includes worked examples for your reference, along with our new calculator to help landlords understand if their profitability will be impacted.

Find out how your clients will be affected

Help and Support

If you have any questions about these changes, please contact your local BDM or your regional Dedicated Broker Support team through Broker Chat or on 0800 545 3131.

Securing current products

You can secure any current products available via TMW Online or TMW MTE by submitting a Full Mortgage Application (FMA) by 8pm on Tuesday 10 May 2016.

Where applicable, paper applications must be postmarked up to Tuesday 10 May 2016.