Landlords can now borrow up to 10% more, lender says
The Mortgage Works (TMW), the buy-to-let mortgage lender of Nationwide Building Society, has reduced rates on selected products by up to 0.95%.
Rate cuts across selected one-, two-, five- and 10-year fixes were implemented by the lender, from Saturday. These reductions, TMW said, meant landlords could borrow up to 10% more due to stress rates being tied to the buy-to-let rates.
The specialist lender’s 75% loan-to-value (LTV) one-year fix with a 2% fee was reduced by 0.65%, while the 65% LTV two-year fix with a 3% fee was cut by 0.80% to 4.99%.
The two-year fixed rate at 75% LTV had the largest reduction with a 0.95% cut, bringing its rate down to 6.59%.
TMW’s 55% LTV five-year fix with a 3% fee is now priced at 5.14% after getting a rate reduction of 0.55%, while the 65% LTV 10-year fixed rate, now with a rate of 5.39%, was reduced by 0.50%.
Full details on the latest rate reductions can be found online through the buy-to-let lender’s website.
“Following the rate reductions for our existing customers last week, we’re continuing to demonstrate our commitment to landlords with significant rate reductions for new lending,” said Daniel Clinton, head of specialist lending at The Mortgage Works.
“As well as offering competitive rates that help landlords manage their cashflow, these reductions will help ease affordability pressures with some landlords being able to increase borrowing by 10%.”
Lewis Shaw, owner of Shaw Financial Services, said the latest rate reduction from TMW “can only be a positive sign from one of the biggest buy-to-let lenders in the UK.”
“Clearly, they think the peak in rates has passed, and with volatility subsiding in the housing market, particularly the buy-to-let sector slowing, this will be a welcome shot in the arm for landlords,” Shaw commented. “This size of rate drop should also shake up the market as where The Mortgage Works goes, others are sure to follow.”
Elliott Culley, director at Switch Mortgage Finance, said he was not surprised that TMW was the first to offer much better rates in the market as Nationwide’s buy-to-let lender has been leading the way with BTL rates this year.
“The mortgage rates still have some way to go to help landlords, but this is a step in the right direction,” he remarked.
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