Lender now has a number of sub-5% deals
The Mortgage Works (TMW) has reduced rates by up to 75 basis points (bps) across its buy-to-let, let-to-buy, and large portfolio range for new business products.
The buy-to-let mortgage lender of Nationwide Building Society now has a number of sub-5% deals with rate cuts on products such as five-year fixes with a 3% fee, available at 55% and at 65% loan-to-value (LTV) with rates at 4.84% and 4.89%, respectively.
“These rate reductions will improve our competitive position and showcase our continued commitment and support for landlords,” Dan Clinton, head of specialist lending at The Mortgage Works, said. “We know these reductions will be welcomed by buy-to-let investors as we work to support them with their cashflow and affordability.”
Brokers reached for reaction by news agency Newspage welcomed the new rate reductions from TMW, but questioned why the rates were not available to existing borrowers.
“This is great news for newcomers at TMW, but TMW also needs to look after their current borrowers,” Anil Mistry, director and mortgage broker at RNR Mortgage Solutions, commented. “Most of their recent updates have been about lowering rates for new customers.
“However, since October 2022, remortgaging has become more challenging due to stricter stress tests. Many borrowers have no choice but to stick with their current lender, and TMW needs to pay more attention to this situation and reduce rates for existing customers.”
Riz Malik, founder and director at R3 Mortgages, pointed out that while TMW had set the bar in the reducing its buy-to-let rates, he does not think many lenders will follow anytime soon.
“We need lenders to be as committed to the buy-to-let sector as they are to the residential market and offer fair treatment to existing customers as well as new ones,” Malik said.
Gary Bush, financial adviser at MortgageShop.com, however, has a different take and believes more rate cuts from other lenders are likely as the rate war continues.
“Buy-to-let mortgage rates sub-5% from a division of Nationwide Building Society is fantastic news obviously, especially with drops as significant as this,” he remarked. “More are now likely, as the lender rate war rolls on.”
Justin Moy, managing director at EHF Mortgages, said the move would help some landlords afford to keep properties they may have been planning to sell as a result of recent high rates.
“Lenders driving the cost of borrowing down should encourage the rest of the market to follow suit, and hopefully soon,” Moy added. “A potential lifeline for the UK’s beleaguered landlord community.”
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