The Mortgage Works (TMW), a leading Buy to Let lender, has today announced a reduction in affordability stress rates for individual landlords, making it easier for them to borrow more on selected mortgage applications.
Changes To Buy-To-Let Mortgage Affordability Stress Rates
TMW has lowered its stress rate by 0.50% on new Buy to Let applications where the Loan to Value (LTV) is 65% or below, and where either of the following conditions apply:
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The product is a 5-year fixed term, or
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The application is a like-for-like remortgage on any fixed product term.
Under the revised criteria, TMW will now apply a stress rate of 4.00% or pay rate, whichever is higher, for eligible cases. This is a notable shift from the previous stress rate of 4.50%, and is designed to boost borrowing potential for landlords seeking to secure long-term stability or refinance without raising additional capital.
Louis Mason, Marketing Director at Oportfolio Mortgages, welcomed the change, stating:
“This is a positive and much-needed step for many of our landlord clients. With affordability still a major hurdle in the Buy to Let market, TMW’s reduction in stress rates could make a real difference for investors looking to refinance or secure a new fixed deal. It gives landlords more room to manoeuvre, whether that’s growing their portfolio or simply locking in better rates. We expect to see a noticeable uplift in borrowing capacity as a result.”
Importantly, there are no changes to the stress rates applied to Limited Company applications, which will continue to follow the existing criteria.
This move aligns with broader market trends as lenders respond to a cooling inflation environment and growing demand for longer-term mortgage products. By easing affordability assessments, TMW aims to provide greater flexibility for landlords looking to expand or stabilise their portfolios.
