The Mortgage Works cuts rates and launches 10-year fix

The Mortgage Works cuts rates and launches 10-year fix

The Mortgage Works has cut rates and introduced a new 10-year fixed rate loan.

The specialist buy-to-let arm of Nationwide Building Society will reduce rates for its two-year tracker mortgages by up to 0.45 per cent and is also introducing a 10-year fixed rate product.

Paul Wootton, managing director of TMW, said: "The reductions to tracker rates and the new 10-year fixed rate product, which offers a significantly lower rate than previously, are aimed at widening choice for landlords who are looking to manage their cashflow and access competitive buy to let mortgage rates.

"Along with recent improvements to our product proposition, this further illustrates TMW’s continued commitment to supporting brokers and landlords."

Tracker rates now start at 1.49 per cent for a 65 per cent loan-to-value (LTV) on its buy-to-let mortgages with a £1,995 fee.

All tracker products also have the switch-to-fix facility, allowing customers to switch to an existing customer fixed rate deal without incurring early repayment charges. These reductions make tracker rates around 0.30 per cent less than the equivalent fixed rates.

The new 10-year fixed rate buy-to-let mortgage is for a 75 per cent LTV with a 3.49 per cent rate. This is a rate reduction of 1.50 per cent on the previous product.

It includes free standard valuation, £250 cashback, and no arrangement fee.

TMW recently removed its age limit at application for experienced landlords looking to borrow up to 65 per cent LTV and also increased the maximum LTV for BTL mortgages from 75 per cent to 80 per cent for first time and experienced landlords.

Martin Stewart, director at London Money, said: "The tracker rate is an excellent product and I think it will prove very popular for buy-to-let landlords.

"This probably tells us two things: one, the buy-to-let market is far from healthy, lending is not where they need it to be and they are now applying CPR in the form of cheaper money, and two, despite rhetoric from the Bank of England no one is really expecting rates to rise that much in the future.

"However, the ability to switch during the term on to a fixed rate is a very good safety net in case rates do move suddenly and in the wrong direction.

"I am not too sure that a 10-year fixed rate is ideal given the headwinds that are on the horizon for the buy-to-let sector. If people can commit to the being landlords for 10 years then it makes sense but at a time when people are falling out of love with the concept of being responsible for housing people I think tying in for 10 years could prove an issue should they wish to exit quickly."