The Mortgage Works (TMW) will be reducing rates on selected buy-to-let (BTL) and limited company products.
The new rates will be effective from Tuesday 26th March.
The new BTL rates include: a 5-year fixed rate for purchase and remortgage at 3.99% with a 3% fee, available up to 55% loan-to-value (LTV) – a reduction of 0.10%; a 5-year fixed rate for purchase and remortgage at 4.04% with a 3% fee, available up to 65% LTV – a reduction of 0.10%; a 5-year fixed rate for purchase and remortgage at 4.59% with no fee, available up to 65% LTV – a reduction of 0.15%.
For limited companies, new rates include: a 2-year fixed rate for purchase and remortgage at 4.99% with a 3% fee, available up to 75% LTV – a reduction of 0.40%.
Dan Clinton, head of specialist lending at TMW, said: “As one of the UK’s leading buy-to-let lenders, we continue to support landlords with a range of product options.
“We know that rate is a key consideration for those in the buy-to-let and limited company market as they try to manage their finances through fixed rates.
“The current environment means we’re pleased to be able to make reductions on selected mortgages from tomorrow.”
Newspage asked brokers for their thoughts.
Reaction
Darryl Dhoffer, adviser at The Mortgage Expert:
“Buy-to-let mortgages have been dropping for some time now.
“Who would have thought that a headline buy-to-let rate of 3.99% would be cheaper then a standard residential mortgage rate?
“Fair play to The Mortgage Works. Let’s hope big brother, Nationwide, wake up and start reducing residential interest rates.”
Gary Bush, financial adviser at MortgageShop.com:
“The Mortgage Works, a division of Nationwide, breaks cover and drops its buy-to-let mortgage rates.
“One has gone down to just 3.99% for a 5-year fixed rate, breaking the all-important sub-4% barrier.
“It’s great to see the return of fixed rates with a 3 at the beginning of them.
“Watch this space as more cuts from other lenders are almost baked in.”
Charles Breen, founder at Montgomery Financial:
“This is a master stroke from The Mortgage Works, relieving the pressure on landlords and tenants alike.
“Hopefully other major buy-to-let lenders will follow in reducing their own rates.
“As one of the biggest lenders in the buy-to-let space, this is an encouraging sign for borrowers.”
Amit Patel, adviser at Trinity Finance:
“Eggcellent news for landlords as TMW announce the launch of a product below 4%.
“We need more competitive rates to help ease the burden on landlords who have had to ride a rough storm for a number of years now.
“Hopefully other lenders will come out of their shells and announce some eggstra-ordinary rates over the coming days.”
Ying Tan, CEO at Habito:
“This is a great statement of intent and a decisive move by The Mortgage Works.
“A sub-4% rate is an important psychological barrier to overcome, and no doubt others will follow suit.
“This will bring joy to landlords [across] the country. The Easter bunny has finally arrived.”
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management:
“Finally, some sense from a lender. While others dither TMW is getting on and doing it.
“Their rates were already favourable so this is great for the rental market, both landlords and tenants.”
Justin Moy, managing director at EHF Mortgages:
“Great to see one of the larger mortgage lenders react to the Bank of England’s mood of optimism, which has lowered swap rates over the past few days.
“A sub-4% BTL for the landlords will definitely catch the investor’s eye.
“Let’s hope similar residential rate cuts are just around the corner.”
Elliott Culley, director at Switch Mortgage Finance:
“Welcome news for landlords as TMW make rate reductions across their product range.
“TMW have a reputation for offering some of the more competitive rates in the market and it’s no [surprise] to see them being the first to act in this space since the positive news on inflation.”
Ben Perks, managing director at Orchard Financial Advisers:
“The headline rate of 3.99% fixed for 5 years is extremely competitive in the buy-to-let space.
“It’s great to see lenders responding positively to the reduction in swap rates.
“Hopefully this is just the start.”
Robert Timm, managing director at Sunland Mortgages:
“In the week where we have Good Friday, it’s proving to be a very good Monday as another major lender chops rates.
“Whisper it only but things are starting to look up.”
