It slashes rates across new business and switcher range
Following rate cut announcements from big lenders Halifax and HSBC, The Mortgage Works (TMW) has also reduced rates by up to 30 basis points.
TMW – the buy-to-let mortgage lender of Nationwide Building Society – slashed rates across the majority of its products for new and existing customers, with rates starting from 4.34%.
Products with reduced rates include a 4.34% two-year BTL fixed rate available at up to 65% loan-to-value (LTV) and a 4.49% five-year BTL fixed rate available at up to 55% LTV. Both products are available for purchase and remortgage and come with a 3% fee. There is also a 5.49% two-year BTL fixed switcher rate with a £1,495 fee, available at up to 65% LTV.
Full details on the latest rate reductions made by TMW can be found on its website.
“We are extremely pleased to announce further rate cuts to demonstrate our ongoing commitment to landlords,” stated Daniel Clinton, head of specialist lending at The Mortgage Works. “These build on recent enhancements to our proposition, including increasing our maximum loan-to-value to 75% across a landlord’s portfolio.
“At time where interest rates are pivotal to the short-term profitability of buy-to-let, we’re proud to offer a suite of fixed rate options below 4.5%, with rates starting as low as 4.34%.”
Brokers welcomed the news, which follows data published by UK Finance last week showing that the number of buy-to-let mortgages in arrears was 29% higher during the third quarter of 2023 compared to the previous quarter.
“Any rate reductions in the beleaguered buy-to-let market will be gratefully received,” said Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management. “It’s great to see sub-5% rates with lower percentage fees. This will be a shot across the bows to other buy-to-let lenders as it is only TMW, Virgin, and BM Solutions who seem to be trying to help landlords at present.”
Rowan Frayling, managing director at J Finance, believes the move will breathe more life into the buy-to-let market.
“It’s great that the fees aren’t as extravagant as some have been lately,” he added. “Nationwide and TMW thankfully appear to be attempting to ‘build society’ again.”
However, for Elliott Culley, director at Switch Mortgage Finance, it would be good to see TMW make some positive changes with its affordability calculations.
“Making amendments to their stress testing for higher rate taxpayers looking to remortgage with no additional borrowing would be very beneficial to landlords in this current market,” he pointed out.
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