The products were launched following significant changes in interest rates
The Mortgage Works (TMW) has launched a new range of two- and five-year fixed buy-to-let mortgages, updating its stress rates.
The new buy-to-let rates include a one-year fixed 75% LTV at 4.64% with a 2% fee, a two-year fixed 65% LTV at 5.04% with a 3% fee, and a five-year fixed 65% LTV at 5.14% with a 3% fee.
TMW said the products are available for purchase and remortgage, with other rate and fee combinations also available.
“These new buy-to-let mortgages offer our most competitive rates to landlords who want to fix their repayments and manage their cashflow,” Daniel Clinton, head of The Mortgage Works, said. “Following significant changes in buy-to-let interest rates and the wider economy, the minimum stress rate for TMW buy-to-let mortgages will increase to 8.49%. This change is an interim measure to better protect landlord cashflows during a period of interest rate turbulence.
“TMW’s affordability model remains under review, and it intends to launch a more tailored approach to stress rates in due course. As a responsible lender, it is important we respond to recent events, ensuring our affordability model reflects the latest interest rate environment, and helps safeguard the ability for our landlords to afford their mortgage both now and in the future.”