It also launches new five-year fixed rate products
The Mortgage Works (TMW) has announced rate reductions of up to 50 basis points on selected limited company rates, effective immediately.
Reductions across selected fixed rates on the limited company buy-to-let range include a 0.50% cut on the 75% loan-to-value (LTV) two-year fix with a 3% fee and a 0.20% decrease on the five-year option.
TMW, however, decided to increase selected 10-year fixed buy-to-let rates by 0.10%. Rates at 65% LTV now start from 5.49%.
The buy-to-let mortgage lender of Nationwide Building Society also launched new five-year fixed rate products, including one with a 5.49% rate and a 5% fee, available up to 70% LTV. The new limited company products are available for purchase, remortgage, and further advance with free standard valuation.
Full details on the latest rate reductions can be found online through the lender’s website.
“We are pleased to announce these rate reductions, which we will be welcome news for landlords,” said Daniel Clinton, head of specialist lending at The Mortgage Works. “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.”
Justin Moy, managing director at EHF Mortgages, commented that this was “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,” he said. “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.”
Stephen Perkins, managing director at Yellow Brick Mortgages, added that the 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,” Perkins continued. “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.”
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