General criteria

Minimum / Maximum Term

Min: 5 years - Max: 35 years.

Minimum loan

• £25,001 (unless otherwise stated); minimum property value £50,000.
• £2,500 for Further Advance applications.

Age

For maximum age on joint applications:

• We’ll use the age of the eldest applicant.
• There’s no maximum age for a First Time Landlord, when applying with an Experienced Landlord at 65% LTV or less.

Loan Purpose

• Purchase or remortgage in England, Wales and mainland Scotland
• Remortgages acceptable after the property has been owned and let for a minimum of six months
• Raising capital for non-business purposes including for deposit/purchase of a Buy to Let property, will be considered
• Raising capital for non-structural home improvements will be considered
• Remortgage with no capital raising may require proof of the current mortgage balance e.g. the last mortgage or redemption statement

Remortgaging existing residential properties

All applicants who are remortgaging their existing residential property as a Buy to Let must choose from the Let to Buy product range.

If your client is remortgaging their current residential property as a Buy to Let with The Mortgage Works, they can apply for their onward residential mortgage with Nationwide.

Our dedicated Let to Buy product range offers cashback, in addition to the free valuation that comes as standard with all The Mortgage Works Let to Buy products.

This joint proposition is only available through intermediaries. For details on how to submit cases for simultaneous The Mortgage Works and NFI applications, please read our Let to Buy processing guide.

Offer Validity

All mortgage offers are valid for 6 months from the date of the first offer.

In addition, there is a 15 day grace period from the date of the offer expiry in order to complete. You don’t need to contact us, this is automatically applied.

New Build Offer Extensions

If you’re purchasing a New Build property and your mortgage offer is due to expire, you can apply for an offer extension of 45 days. This is inclusive of the automatic 15 day grace period.

To request a New Build offer extension, please email us at TMW.Applications@themortgageworks.co.uk detailing the account number, customer name and confirmation that there have been no material changes to the application. You should only contact us if the original offer is within 30 days of expiry.

To help us process your request, please submit your request no later than 15 days before the offer is due to expire. If you know your client will be unable to complete within the extended offer period, please complete a new application as no further extensions will be available.

Please be aware that you can't apply for an extension when the offer has expired.

Tenancy agreements

• We accept this in the form of an Assured Shorthold Tenancy Agreement for a period of up to thirty-six months*. This covers:
• Occupation Contract in Wales
• Short Assured Tenancy
• Private Residential Tenancy (PRT) in Scotland

• Multiple tenancy agreements for a single property are acceptable for all applications. This is regardless of whether it's a Standard Buy to Let (up to a maximum of 4 tenants) or House in Multiple Occupation (HMO).
• We'll accept purchase applications where existing tenants will remain in the property. This is subject to a new signed tenancy agreement on completion. Or the conveyancer confirms the benefit of the tenancy agreement is transferable to the borrower as a successor in title to the original landlord.
• Evidence of rental payments and a copy of the tenancy agreement may be requested to support non-standard tenancies.
• Non-Assured Shorthold Tenancy Agreement applications considered up to thirty-six months which cover:
• Local authority
• Housing Association Tenancy
• Corporate Tenancies
• Private individuals (where annual rent exceeds £100k).
• Corporate lets are considered for use by the company’s employees where the company employs more than 1,000 staff and are UK based.
• Tenancy agreements paid in cash are generally acceptable if supported by evidence of rental payments.
• We won't lend to an applicant if they have an immediate family member renting the property. See the FCA website for a definition of an immediate family member.
• Premium lease agreements (tenancies where you pay a proportion of the rent upfront) considered subject to the following LTV limits. Please contact us pre-application.
• We won’t accept a guaranteed rent scheme.

*We'll accept tenancies in a PRT form in Scotland and the 36-month period will not apply to those tenancies. All tenancy agreements are subject to assessment by the conveyancer acting on behalf of the client. This is to ensure adherence with UK Finance guidelines.

Licensing

Depending on the location and type of rental, private rented properties may need different types of licensing.

The licence applies to both the owner (or the owner’s agent) and each property. The new owner must apply for a new licence when they purchase a property.

Types of licence

Selective licence

A local authority may require selective licensing for all private rented property in a specific area, of any type.

Additional licence

A local authority may require additional licensing for specific property or rental types in a given area.

HMO licence

Under the Housing Act 2004, all large HMOs in England and Wales must be licensed. A large HMO is:

• 3 or more storeys
• occupied by 5 or more persons
• forming at least 2 separate households

See our HMO criteria page for full details of how we treat these applications.

Licensed property criteria

We'll lend on licensed properties if they meet the following criteria:

• Remortgage and further advance: A relevant current licence must be in place. There may be some circumstances where proof that a licence has been applied for are acceptable.
• Remortgage converting a residential property to a buy to let: Proof that the relevant licence has been applied for
• Purchase and Let to Buy: Proof that the relevant licence has been applied for.

If a landlord has a licence, but it’s not the right licence for their use of the property, we'll decline.

Sometimes selective or additional licensing applies to a small HMO, also known as a C4. We don't treat these applications as HMOs unless they meet our definition of HMO.

Valuations

If our valuer believes the property doesn't meet the requirements for licensing or breaches licensing requirements, they'll decline, even if the landlord already has a licence.

See our Valuations page for more details on appeals.

Change of security address

For changes to the security address during the application process, a new application will need to be submitted. Products and criteria at time of re-submission will apply.

Portability

Accepted. Applies when applicant simultaneously completes a mortgage for the same or greater amount keeping the same interest rate for that portion of the new mortgage without incurring an early repayment charge. Subject to meeting the company's lending criteria at the time of application.

Private sales

Private sales can be considered subject to the following:

• Confirmation as to how the applicant sourced the property
• Private sales are acceptable but we would expect there to be an immediate link between the applicant and the vendor e.g. work colleague/friend/neighbour
• Inter-family sales are unacceptable.
• Properties must be purchased at full market value
• Please let us know if there are any incentives
• Properties being purchased for more than 10% below the market value will not be considered
• This doesn’t include properties purchased from a recognised developer and the discount/incentive can be evidenced.
• Evidence of Deposit will be required on all applications.
• We won't accept applications where the vendor will continue to reside in the property after completion.
• Applications in a limited company name purchasing from one of the directors and/or shareholders aren't considered private sales.
• Properties sourced due to proximity of an existing Buy to Let (BTL or residential are potentially acceptable, however, please consider our property concentration limits before applying).
• All cases will be subject to full underwrite and plausibility review.

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.

Property Investment Clubs / Companies

Applications to purchase properties sourced via Property Investment Clubs/Companies are not accepted. These are typically businesses which offer to buy a property quickly from a seller, and then sells it on to another buyer.

Property

All Buy to Let properties must be used for residential purposes only and be in a lettable condition, to be determined by the valuer.

Properties not owned in personal name(s)

• Applicants purchasing/transferring a property not owned in personal name(s) are accepted providing they fall within one of the following categories:
• Local Authority/Housing Association owned properties
• Properties where the owner is a lender listed in the UK Finance handbook.

Properties owned by limited companies

• Properties owned by limited companies where the purchase is an open market transaction and the applicant has no links to the vendor.

Second charge

A second charge is a second mortgage secured on your client's property with another lender. A second charge is secondary to their main loan so when the property is sold, the main lender will be repaid first. The main lender will need to give their permission before they take a second charge.

New applications with existing second charges are not accepted (unless repaid as part of the transaction). Consent to second charges post-completion considered on a strict case by case basis. 

This will be subject to criteria and affordability at the time of application, including rental cover assessment and LTV limits (currently the LTV can't exceed 50% LTV before adding second charge) and the purpose must be for home improvements only.

Please contact us to find out more.

Maximum loan per property

* Maximum loan on Green Further Advance products is £15,000.

When calculating the maximum borrowing, this will include any product fees you want to add to the loan. If the product fee is being added to the loan, this can exceed the maximum LTV. But it can't exceed the maximum loan amount.

For applications above 75% LTV, the property must have an Energy Performance Certificate (EPC) rated C or above. Applications on properties which don't meet this criteria will be declined.

Maximum overall exposure per application

Applicant details

Applies to all products, unless stated

Applicants

• Up to two applicants accepted per application
• First Time Buyers considered when accompanied by an existing property owner. For example First Time or experienced landlord.
• Buy to Let Guarantors not considered
• The mortgage introducer can't be the applicant as well
• Vendor can't be an immediate family member of the applicant
• Our mortgages are available to self-employed.
• Regulated Buy to Lets. (We won't accept where the property is occupied by the borrower or a member of the borrower's immediate family. This applies now or in the future).

Applicant definitions and acceptable combinations

• First Time Buyer (FTB)*: An applicant who has not owned and occupied their own home for the last six months and has not owned and let a Buy to Let property for the last six months. Applications will be considered, subject to additional underwriting.
  • The FTB must be accompanied by a current homeowner or Experienced Landlord
  • Examples of scenarios which may impact acceptance of the application include:
  • The FTB is unable to prove that they can support the mortgage from their own income
  • The deposit is wholly gifted by the 2nd applicant / other party (no deposit from own resources, unless gifted by partner)
  • The FTB lives in a property of similar value (rented or with parents)
  • The FTB is not purchasing with spouse / partner

• First Time Landlord (FTL): An applicant who has owned and occupied their own home for at least the last six months, but has not owned and let a Buy to Let property for the last six months (or if the applicants only Buy to Let property has been vacant for the last 2 or more months).
  • First Time Landlords remortgaging a second property are not accepted. This includes inherited properties not yet in the applicant’s name.
  • The loan has to be used to buy a new Buy to Let property only. We’ll need evidence of your client’s deposit for all applications – see our ‘Source of deposit’ information to see what deposit types we accept, and what proofs need to be provided.
  • Maximum age 70 at application (unless a joint application with an Experienced Landlord and below 65% LTV).
  • The maximum LTV we’ll consider for a First Time Landlord is 80%.
  • A sole applicant can have a maximum of three properties.

• Experienced Landlord (EXPL): An applicant who has owned and let a Buy to Let property for at least the last six months (they may or may not own and occupy their own home).
• If the applicants only buy to let property has been vacant for the last 2 or more months, we would consider the applicant to be a First Time Landlord.
• Consumer Buy to Let (CBTL): An applicant with no other let properties wishing to obtain a mortgage on a property that has either been inherited or has previously been occupied by the borrower or related person at any time. 

Residency

• UK residents only.
• Applicants with a previous address abroad in the last three years are not accepted. For BFPO addresses, please contact us to check if this is accepted.
• LTV restrictions may apply.

Applicants who work or live outside of the UK for all of the year at the time of application will not be accepted. However, exceptions can be made for applicants who work or live outside of the UK for part of the year, subject to underwriting assessment. The maximum loan to value may be restricted to 70%.

To find out what ID proofs we need to see for all new mortgage customers, see our list of acceptable proofs of name and address.

Acceptable ID proofs

Foreign nationals

Foreign nationals must:

• be a resident in the UK for at least three years prior to application
• have a UK bank account.

Any applicant without permanent right to reside must be an owner occupier verified by a land registry search.

Applicants who work or live outside of the UK for all of the year at the time of application are not acceptable. However, exceptions can be made for applicants who work or live outside of the UK for part of the year provided they're a UK or Irish national, subject to underwriting assessment. The maximum loan to value may be restricted to 70%.

Republic of Ireland (ROI) Nationals

ROI Nationals can live and work in the UK without time limits and will be treated as UK Nationals.

Non-UK / ROI Nationals

• Applicants with settled or pre-settled status will be treated as having indefinite leave to remain.
• The maximum LTV is 65% where applicants don't hold indefinite leave to remain. Exceptions to this LTV will be considered for Further Advance applications where there is work required to maintain the property.
• The 65% LTV limitation doesn't apply if one of the applicants is a UK/ROI national or holds indefinite leave to remain/settled/pre-settled status.
• Where an applicant doesn’t have indefinite leave to remain/settled /pre-settled status, and/or has a points based visa, they must have a minimum of 2 years and 6 months remaining at the time of uploading the proof.
• Deposit must come from the applicants own resources.

To find out what ID proofs we need to see for all new mortgage customers, see our list of acceptable proofs of name and address.

Acceptable ID proofs

Term extension

If your client wants to change the term of their buy to let mortgage, they'll need to apply directly on our Extend your mortgage term page.