X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Mortgages & Finance

    TMW new 125% ICR

    Hi

    Last week, TMW changed to 125% ICR with 20% basic tax band applicant, with following conditions

    125% ICR

    • Borrowers must be lower rate tax payers (gross income of £45k or less in England/Wales or £43k or less in Scotland) upon completion of the mortgage with no more than 3 rental properties (with or without a mortgage).
    • All rental properties are included in this total, including any in-flight purchase or LTB applications with TMW.
    • For purchase and Let to Buy applications, 75% of the proposed gross rental income will be added to current gross income to account for the increase in taxable income.
    • Proof of income will be required

    http://www.themortgageworks.co.uk/lendin...me#125-icr

    But I am still confused, does maximum 3 properties include the properties with other lenders,  or only count within TMW?

    Thank you

    0
    0

    this sort of criteria will have impact on any  one who is a  40% tax payer

    Personal Investing for investor  who is working full time 

    The days of when you worked and you purchased a BTL for a pension are coming to an end If you Leveraging    

    0
    1

    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    As you quote with or without a mortgage I would think it reasonable to assume it does include mortgages with other lenders.

    0
    0

    Looks like even with large deposits lenders are still going to be restrictive.

    So perhaps to ensure future remortgage circumstances it is worth reducing your letting properties to 3..If one sold off other properties potentially very small or no mortgage would be required.

    So we have a sort of second type of S24.

    Might as well downsize to be able to obtain the best mortgage products.



    0
    0

    Hello Double Tiger

    The portfolio assessment is not restricted to TMW mortgaged properties only, it is across the board.

    They have always had the right to assess income, even though they have been known as a 'no minimum income' lender.  The no minimum income is a criteria relaxation for the majority of cases due to the way they carry out their usual plausibility checks, however as a responsible lender (and part of Nationwide BS) so they have had the right to check income, since long before these new ICR rules.  Same as BM Solutions and other lenders too.

    TMW still offer some excellent products and can be accessed via https://www.PropertyTribesFinancialServices.com

    Hope that helps.


    0
    0

    FOR INDEPENDENT MORTGAGE AND INSURANCE ADVICE

    PROPERTY TRIBES FINANCIAL SERVICES

    http://www.propertytribesfinancialservices.com

    http://www.propertytribesfinancialservic...contact-us

    CONTACT US FOR LIFE INSURANCE QUOTES AND STRATEGIES.  PORTFOLIO MORTGAGES (VARYING TERMS) COVERED

    http://www.propertytribesfinancialservi...statement/


    Dear all,

    I am relatively new to buy-to-let and I am still looking to purchase my first property. I find this website really useful but sometimes new people on the forum like me do get thrown  by some of the abbreviations you use. could we please write in full when the abbreviation is first used in the post and then use the abbreviation in the rest of the text please? What is ICR? I guess TMW is (the mortgage works). do you mean BTL and not LTB? many thanks.

    0
    0