About The Mortgage Works
The Mortgage Works is a part of Nationwide Building Society and provides their buy-to-let mortgages. They have been specialising in this area since 1988, and have won awards for the products and services they offer to buy-to-let investors and portfolio landlords.
Originally Sun Bank, The Mortgage Works was acquired by the Portman Building Society in 2001 and took on its current moniker in 2007 when Portman merged with Nationwide.
What type of buy-to-let mortgages do they offer?
The Mortgage Works offer a range of buy-to-let mortgages for the following:
- First-time landlords
- Portfolio landlords
- Self-employed landlords
- Limited companies
- HMO investors
- Landlords who are remortgaging
The Nationwide subsidiary has exclusive products for existing customers, including those seeking green additional borrowing, and let-to-buy agreements. Their mortgage range includes 1, 2, 3, 5 and 10-year fixed-rate deals, as well as tracker-rate mortgages.
Lending criteria
The eligibility requirements for a buy-to-let mortgage at The Mortgage Works is as follows:
- Deposit requirements: Start at 20% of the property’s value or 25% if it has an Energy Performance Certificate rating of D or E.
- Age: The maximum age upon application is 70 years old, but there is no upper age limited for experienced landlords with at least 35% deposit.
- Landlord experience: There is no minimum amount of experience needed as The Mortgage Works will lend to first-time landlords. They will only lend to first-time buyers if they are applying with someone who has owned a home for six months.
- Credit history: Bad credit mortgages are available under some circumstances, but serious issues like bankruptcies and repossessions need to be fully discharged.
- Portfolio size: Borrowers can have up to 10 mortgaged properties on completion.
- Loan sizes: The minimum amount they will consider letting you borrow is £25,001, or £2,500 for additional borrowing applications. The maximum is £1.5 million.
What interest rates are available?
The interest rate The Mortgage Works will offer will depend on a range of factors, including the loan-to-value (LTV) ratio and the type of product you choose. The table below shows a representative sample of their deals at the time of writing (January 2024).
The example repayments we have provided are interest-only results based on a mortgage size of £190,000 with a 25-year term, which is average for the UK market right now.
Mortgage Type | Initial Interest Rate | Product information |
5-year fixed-rate buy-to-let | 4.54% | 75% LTV, For purchase or remortgage, 3% product fee |
2-year tracker buy-to-let | 5.94% | 65% LTV, For purchase or remortgage, £1,495 product fee |
2-year fixed-rate HMO | 5.19% | 75% LTV, For HMO purchases or remortgages, 3% product fee |
2-year fixed-rate large portfolio | 4.84% | 75% LTV, For purchase or remortgage, 3% product fee, Free valuation and £400 cashback |
The Mortgage Works’ standard variable rate at the time of writing is 8.99%.
The table above was compiled purely for example purposes. The rates were accurate at the time of writing but can change at any time. You can compare the latest deals from The Mortgage Works with lenders across the market for free on Teito - get started here.
Example cost calculations
The tables below show representative examples of how much the repayments on The Mortgage Works’ buy-to-let mortgages typically cost at the time of writing. Each table shows how costs vary based on different variables, including mortgage amount and product type.
Repayments based on mortgage type and rate
This table shows examples of how much the sample of Mortgage Works products we have highlighted could cost each month based on the product type and interest rate.
The example repayments we have provided are interest-only results based on a buy-to-let mortgage size of £190,000, which is average for the UK market right now.
Mortgage Type | Initial Interest Rate | Product information | Monthly Payment (interest-only) |
5-year fixed-rate buy-to-let | 4.54% | 75% LTV, For purchase or remortgage, 3% product fee | £719 |
2-year tracker buy-to-let | 5.94% | 65% LTV, For purchase or remortgage, £1,495 product fee | £941 |
2-year fixed-rate HMO | 5.19% | 75% LTV, For HMO purchases or remortgages, 3% product fee | £822 |
2-year fixed-rate large portfolio | 4.84% | 75% LTV, For purchase or remortgage, 3% product fee, Free valuation and £400 cashback | £766 |
Repayments based on mortgage amount
Monthly repayments can also vary based on the amount you borrow. We have used the same Mortgage Works’ 5-year fixed-rate buy-to-let deal for borrowers with 75% LTV for example purposes, along with a variety of different borrowing amounts.
Mortgage Amount | Initial Interest Rate | Monthly payment (interest-only) |
£100,000 | 4.54% | £378 |
£150,000 | 4.54% | £568 |
£200,000 | 4.54% | £757 |
£250,000 | 4.54% | £946 |
£300,000 | 4.54% | £1,135 |
£400,000 | 4.54% | £1,513 |
£500,000 | 4.54% | £1,892 |
Repayment buy-to-let mortgage calculations
All of The Mortgage Works’ purchase products are available on a capital repayment basis as well as interest-only. The table below shows how the monthly payments for buy-to-let mortgages of the same amounts shown above can vary on this repayment type.
The below results are based on the same Mortgage Works 5-year fixed-rate buy-to-let mortgage with 75% LTV and a standard term length of 25 years.
Mortgage Amount | Initial Interest Rate | Monthly payment (capital repayment) |
£100,000 | 4.54% | £558 |
£150,000 | 4.54% | £837 |
£200,000 | 4.54% | £1,116 |
£250,000 | 4.54% | £1,395 |
£300,000 | 4.54% | £1,674 |
£400,000 | 4.54% | £2,232 |
£500,000 | 4.54% | £2,791 |
Repayments based on term length
The table below illustrates how the repayments on a Mortgage Works 5-year fixed-rate buy-to-let mortgage of £190,000 can vary based on the term length you choose.
Mortgage Amount | Initial Interest Rate | Term Length | Monthly payment (capital repayment) |
£190,000 | 4.54% | 15 years | £1,457 |
£190,000 | 4.54% | 20 years | £1,206 |
£190,000 | 4.54% | 25 years | £1,060 |
£190,000 | 4.54% | 30 years | £967 |
£190,000 | 4.54% | 35 years | £904 |
How The Mortgage Works calculates affordability
The maximum you can borrow is based on the property’s rental potential. Basic rate taxpayers and limited companies will need an interest cover ratio of 130%, while higher rate taxpayers will need it to be 165%. HMO properties must be 175% regardless of tax status.
Is The Mortgage Works a good lender?
They currently hold an average rating of 4/5 on TrustPilot, based on feedback from more than 550 customers. In addition, the Nationwide subsidiary was named as ‘Best Buy to Let Mortgage Lender’ at the 2023/24 edition of Your Mortgage Awards.
Compare rates and deals from The Mortgage Works
You can view rates and deals from The Mortgage Works and compare them with their competitors from across the market for free on Teito. We also have mortgage brokers on hand if you need a little help. Our advisors are buy-to-let specialists who can offer bespoke advice to landlords and often have access to exclusive deals from this lender and others.
Follow the steps below to browse rates in real time and choose your mortgage online:
Get started here: Then select whether you are looking for a two-year fixed-rate mortgage to buy a property or for remortgage purposes.
Specify the purpose of the property: You can compare two-year fixed-rate mortgages for residential or buy-to-let purposes, as well as remortgages.
Choose your own mortgage: Finally, tell us what stage you are at in the process and you can compare rates from across the market and choose the deal you want.
After you have selected a mortgage deal, one of our mortgage brokers will check over your application before securing an agreement in principle for you. They will be on hand to offer bespoke advice, make sure you’re getting the best deal, and oversee your application.
FAQs
Does The Mortgage Works offer residential mortgages?
They are exclusively a buy-to-let mortgage lender. If you are applying for a let-to-buy agreement with The Mortgage Works, they will give you the option to apply for your onward residential mortgage with their parent company, Nationwide Building Society.
Does The Mortgage Works offer holiday let mortgages?
No. The Mortgage Works does not currently offer holiday let mortgages but will consider applications from portfolio landlords who have these properties on their books.
Are The Mortgage Works intermediary only?
The Mortgage Works offers mortgages both direct and on a broker-only basis through its ‘Mortgage Works for Intermediaries’ brand. As a whole-of-market mortgage brokerage, Teito can help you access their intermediary-only products so you have a much wider choice of rates and products to choose from, including the possibility of exclusive rates.
