The Mortgage Works will return to lending at 80% loan-to-value on its buy-to-let, let-to-buy and limited company mortgages tomorrow (7 June), and simplifies its affordability criteria.

Nationwide Building Society’s BTL arm says its new rates at 80% LTV include:

• Two-year fixed rates starting at 5.74%, with a 2% fee
• Five-year fixed rate starting at 5.94%, with a 2% fee

The above loans are available for purchase and remortgage, with other rate and fee combinations available.

It adds that limited company fixed rates start at 6.39%, with a 2% product fee, available for purchase, remortgage and further advances.

The lender says its range of 80% LTV products are available for properties with an energy performance certificate rating of C or above.

Its new affordability policy means that for one, or, two-year terms covering trackers and variable products, purchase,  remortgage (with capital raising) and further advance offers its stress rates will be the higher of pay rate +2%, or 5.50%.

For like-for-like remortgages and fixed rates at five years or over, its stress rate is the higher of pay rate, or 4.50%.

For BTL and LTB, the interest cover ratio will be 130% at the lower tax rate, and 165% at the higher tax rate.

The interest cover ratio for houses in multiple occupation and limited company houses in multiple occupation is 175%, and the interest cover ratio for limited company BTL is 130%.

The Mortgage Works head of specialist lending Dan Clinton says: “We continually listen to feedback and appreciate that affordability policy has become a complex area to navigate.

“These latest changes simplify TMW’s approach and coupled with the wider changes being made to products and criteria, demonstrate TMW’s commitment to landlords, brokers and the wider BTL market.”