Rental calculation and maximum LTV changes

We recently emailed you about the changes we're making to our affordability calculation and maximum LTV.

As a reminder, in order to help landlords safeguard positive cash flow ahead of the tax relief changes being phased in from next year, we're making the following changes with effect from tomorrow, 11 May:

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

We're also extending our end dates to August across all New Business and Existing Customer product ranges. You can view our updated product guide here.

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

To assist you and your clients, we've included 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.

Helpful information on the tax relief changes

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 and criteria

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.