Changes to TMW rental calculation and maximum LTV

From Wednesday 11 May 2016, TMW is making changes to their  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), they are making the following changes:

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

 

Their  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, they’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