From tomorrow, Thursday the 7th of September, The Mortgage Works (TMW) is reducing selected limited company rates by 0.50% and launching new 5-year fixed products.
The reductions will be found across selected 2- and 5-year fixed rate products, including a 2-year fixed rate at 5.99%, with a 3% fee, available up to 75% loan-to-value (LTV) and a 5-year fixed rate at 6.59% with a 3% fee, available up to 75% LTV.
The new limited company products include a 5-year fixed rate at 5.49%, with a 5% fee, available up to 70% LTV – for purchase, remortgage and further advance with free standard valuation.
The Mortgage Works will also increase selected 10-year fixed buy-to-let rates by 0.10%, with rates at 65% LTV starting from 5.49%.
Daniel Clinton, head of specialist lending at The Mortgage Works, said: “We are pleased to announce these rate reductions, which we will be welcome news for landlords.
“The swap rate environment has been improving recently, opening the door for us to reduce rates further, as we look to support buy-to-let investors with their cashflow and help unlock affordability constraints.”
Reaction:
Riz Malik, founder and director at R3 Mortgages:
“There are notable discounts available for limited company borrowers, particularly those looking to secure rates for 1- to 2-years.
“Hopefully, this will ignite more competition in a sector that, so far this year, has had limited choices without exorbitant arrangement fees. This could be a lifeline for buy-to-let.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“These positive and significant reductions to most of TMW’s products will be celebrated by the UK’s beleaguered landlords.
“Rate reductions across the market are continuing at pace. I’m not entirely sure why the 10-year fix is increasing given the longer-term rate forecasts, but I doubt this was a popular product anyway.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert:
“Grab them while you can, as they may be short lived if inflation figures don’t show a consistent decline on 20th September.
“It is now very clear lenders are trying to fill their loan books, and these reductions are welcome. However, there are still high fees that remain a challenge for many landlords.”
Justin Moy, managing director at EHF Mortgages:
“This is some of the most positive news landlords will have seen for a while. It’s ideal timing for many landlords who are now looking for a new deal for their properties.
“The balance of fees and rates have long been a tough discussion with landlords. Hopefully this will see that issue subside a little, and this positivity spread to other lenders, too.”
Elliott Culley, director at Switch Mortgage Finance:
“Any news of a reduction in interest rates is good news in the buy-to-let market, although the best rates will come with higher fees.
“The stress testing performed by buy-to-let lenders right now is key to further improvements in this space and, hopefully, we will see some improvements over the next few weeks.”
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management:
“Finally, some good movement in the buy-to-let space, even better as TMW are already sourcing at the lowest end of the market.
“Fees are still high for landlords, though, which needs to change for there to be an influx of business getting submitted.”
Kundan Bhaduri, property developer and portfolio landlord at The Kushman Group:
“The reduction in TMW’s rates is a positive sign, not just in the narrow sense of the rates being improved.
“This as one of the country’s largest mortgage lenders, the Nationwide Building Society instilling a positive outlook for the mortgage market and in turn the property sector.
“TMW’s offering is clearly the first amongst the equals in the mainstream, high-street buy-to-let mortgage market.
“It is essentially a bellwether for the industry, and we are confident the rest of the market will follow suit in the days and weeks ahead.”
