The Mortgage Works has raised its lending limits and refined its affordability criteria in a move designed to help professional landlords expand their portfolios.

The maximum loan per property has increased to £2 million for buy-to-let and limited company applications, up from £1.5 million, and to £1 million for let-to-buy, previously capped at £500,000.

Overall portfolio borrowing has also been lifted from £5 million to £7.5 million, reflecting the lender’s aim to serve landlords with larger holdings.

ASSESSMENT

The specialist buy-to-let arm of Nationwide Building Society has also revised how it assesses affordability across a landlord’s portfolio. Under the updated aggregate portfolio policy, properties owned within a limited company structure will now be tested against an interest cover ratio (ICR) of 125%, while those held personally will remain subject to a 145% ICR.

The stress rate of 4.75% and a maximum aggregate loan-to-value of 75% remain unchanged.

Dan Clinton, head of buy-to-let mortgages at The Mortgage Works, said: “This is the latest in a series of enhancements we’re making to our landlord offering. Brokers have been highlighting the need for these changes, and we have listened and delivered.

“As one of the country’s largest buy-to-let providers, it’s important we support landlords across their entire portfolio, and these enhancements will enable us to do just that.”

Nick Mendes, mortgage technical manager at John Charcol, described the changes as a “clear show of support for professional landlords”.

He added: “Higher caps give experienced investors more flexibility to fund and refinance larger assets, while applying a 125% ICR to limited company holdings reflects prevailing market practice and should improve case certainty for well-run SPVs.

“Overall, these are pragmatic changes that align affordability and capacity with real-world portfolio management, signalling continued commitment to the professional buy-to-let market.”