
The Mortgage Works has introduced a Decision in Principle (DIP) for limited company purchase and remortgage applications to improve its application process and speed up lending decisions.
The BTL mortgage lenders says that it’s listened to broker feedback and aims to improve its limited company shareholder policy by allowing minority shareholders with a holding of 20% or less. A limited company can have up to four minority shareholders (with a maximum combined holding of 25%), who don’t need to be part of the mortgage and won’t be credit assessed or required to sign a personal guarantee.
Applications with The Mortgage Works will now see DIPs leave a soft footprint on a landlord’s credit file; a hard footprint will only be left on the credit file once the full application is submitted.

Dan Clinton, head of buy-to-let mortgages, (pictured) says this should make the application process as smooth and quick as possible to support brokers and their landlord clients. “The changes are based on feedback we’ve been getting from brokers in recent months,” explains Clinton. “And, continuing our longstanding support for the limited company market, we’re also making enhancements to our limited company application process to ensure The Mortgage Works remains front of mind for those landlords.”
Nick Mendes, mortgage technical manager at independent mortgage broker John Charcol, believes the move is a practical win for brokers and landlords, giving earlier certainty and helping transactions progress faster. “The switch to a soft footprint at DIP is a welcome bonus, letting clients test eligibility without denting their credit file,” says Mendes.
“Easing the shareholder rules removes friction we often see in company structures and should reduce avoidable referrals.”
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