From Tuesday 16th February 2010 The Mortgage Works is launching a new range of mortgages. This includes Buy to Let products for Limited Companies, Houses in Multiple Occupation (HMO) and a range of Buy to Let tracker mortgages which allow customers to switch onto a fixed rate at any time without incurring Early Repayment Charges¹.

In addition, to improve rates on selected fixed and tracker products, a number of changes are also being made to its portfolio of Buy to Let, Let to Buy and Light Refurbishment products, with some rates reducing by up to 0.30%.

New range of Buy to Let Limited Company products

Highlights:

• Fixed rates starting from 4.39% and tracker rates starting from 4.34% (BBR + 3.84%), available up to 70% LTV.
• Customers can benefit from The Mortgage Works Buy to Let core range rental cover calculation (125%).

New range of products for Houses in Multiple Occupation (HMO's)

Highlights:

• Fixed rates starting from 4.39% and tracker rates starting from 4.34% (BBR + 3.84%), available up to 65% LTV.
• Rental income will be considered on a multi-tenanted basis (rental cover of 150% required) and single and multi tenancy agreements will be accepted.

Using a limited company for Buy to Let investments has many advantages, but landlords who do this are in the minority and are not well served by mortgage lenders. Similarly, products for HMOs are usually considered a niche segment of the Buy to Let market, with very few lenders offering them. The Mortgage Works is happy to offer these customers more choice with competitive rates.

Switch to Fix Buy to Let tracker products

Highlights:

• Tracker mortgages starting from 3.24% (BBR +2.74%).
• Products available up to 70% LTV.
• The Mortgage Works is the only Buy to Let lender offering Switch to Fix products to its customers.

By providing Switch to Fix tracker products The Mortgage Works is offering customers the ability to benefit from low variable rates, but with the advantage of being able to switch to a fixed rate if interest rates increase, giving a greater element of certainty¹.

The Mortgage Works is also making reductions to selected Buy to Let fixed and tracker rate mortgages, changes include:

• 1 year fixed rates reduced by up to 0.30%.
• 18 month products reduced by up to 0.20%.
• 1 year tracker rates at 70% LTV reduced by 0.10%.

Tracie Pearce, Head of Products, The Mortgage Works said: "The Mortgage Works is committed to considering the challenges that landlords face now and in the future and continually looks for ways to offer them greater choice and common sense alternatives. The HMO, Limited Company and Switch to Fix propositions are designed to give customers flexibility over their borrowing, which means giving them more control and more chance of finding the perfect product for their needs".

Notes to editors

1 Within the benefit period and subject to criteria being met.

New Buy to Let Limited Company range

• 1 year fixed rate 4.39%, with 3.50% fee, 70% LTV.
• 18 month fixed rate 5.29%, with 3.50% fee, 70% LTV.
• 2 year fixed rate 5.89%, with 3.50% fee, 70% LTV.
• 1 year tracker rate 4.34%, with 3.50% fee, 70% LTV.
• Paper applications only.
• Minimum rental coverage of 125% of pay rate or pay rate + 0.50% for variable rate products (minimum 4.99%).
• Each loan must be on a single account basis and self-supporting for LTV and rentals.
• We will only lend to companies whose sole purpose is the purchase and letting of residential properties.

New Buy to Let HMO range

• 1 year fixed rate 4.39%, with 3.50% fee, 65% LTV.
• 18 month fixed rate 5.29%, with 3.50% fee, 65% LTV.
• 2 year fixed rate 5.89%, with 3.50% fee, 65% LTV.
• 1 year tracker rate 4.34%, with 3.50% fee, 65% LTV.
• Single & Multiple tenancy agreements accepted (multiple - up to a maximum of 4 applicants).
• Rental income assessed on a multi tenanted basis, rental cover of 150% of pay rate or pay rate + 0.5% for variable rate products (minimum 4.99%).
• Paper applications only.
• The following properties are classes as HMOs:

• Occupied by 5 persons or more and comprising 3 or more households (unrelated persons).
• Any other property subject to HMO licensing.
• HMOs must have no more than 4 habitable storeys.
• Properties consisting of more than one self-contained unit under a single title are not acceptable.

Fees inclusive of 17.5% VAT

Buy to Let products (Single Property Customers):

• Selected 1 year & 18 months fixed rates reduced by up to 0.30%.
• Selected 1 year tracker rates reduced by 0.10%.
• 1 year fixed and tracker products with easy remortgage options reduced by 0.10%.
• 18 month fixed rate product at 4.79%, 60% LTV with 2.50% fee, rate increased by 0.10%.

Let to Buy products (Single Property Customers):

• 1 year fixed and tracker rates reduced by 0.10%.

Light Refurbishment products (Single Property Customers):

• 1 year fixed and tracker rates reduced by 0.10%.

New Switch to Fix range

• 1 year tracker rate 3.24% with 3.75% fee, 60% LTV.
• 1 year tracker rate 3.89% with 3.50% fee, 70% LTV.
• 2 year tracker rate 3.89% with 3.50% fee, 60% LTV.
• 2 year tracker rate 4.24% with 3.50% fee, 70% LTV.