TMW launches guarantor mortgage range
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The Mortgage Works is launching a new range of guarantor mortgages.
The range will offer borrowers a number of limited liability and full liability products.
The move follows Halifax’s recent decision to stop offering guarantor mortgages through brokers, instead focusing on a different first time-buyer product, called lend a hand, not available through brokers.
Applicants must be able to afford at least 70 per cent of the loan amount when applying for the limited liability products. In addition to their existing commitments, the guarantor must be able to afford the shortfall plus a further 10 per cent tolerance.
The limited liability products include a 3.99 per cent two-year fixed rate with 2 per cent arrangement fee, available up to 75 per cent LTV, and a 6.24 per cent two-year fixed rate with an £895 arrangement fee, with an LTV available up to 85 per cent.
TMW says the range would be suitable for graduates who are likely to see their income increase over time, allowing the guarantor to be removed from the mortgage at a later date.
For the full liability products, the guarantor must be able to afford the entire mortgage plus their existing commitments.
The full liability deals include a 3.49 per cent two-year fixed rate with 2 per cent arrangement fee, available up to 75 per cent LTV, and a 2.49 per cent tracker with 2 per cent arrangement fee up to 75 per cent LTV.
The Mortgage Works head of products Tracie Pearce says: “The new range of Guarantor mortgages offer choice and flexibility for guarantors and first time buyers. Many lenders have Guarantor propositions but very few offer products specifically designed to cater for this sector. The Mortgage Works is delighted to support the housing market, helping first time buyers get a foot on the housing ladder.”
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