The Mortgage Works (TMW), the specialist buy-to-let arm of Nationwide Building Society, has offered a lifeline to landlords following a review of its rates and buy-to-let borrowers’ needs.
Tracker rates have been reduced by up to 0.45%, now starting at 1.49% for a 65% loan-to-value (LTV) buy-to-let mortgage with a £1,995 product fee. In addition, all tracker rates have the switch-to-fix facility, meaning that borrowers can choose to move to a fixed rate deal at any time without incurring early repayment charges. This safety net will appeal to landlords concerned about rates suddenly moving in the wrong direction.
Long-term landlords will benefit from 10-year fixed rate
The buy-to-let market is currently undergoing a significant change towards becoming a long-term business enterprise rather than a speculative one. With a free standard valuation, no arrangement fee and £250 cashback, landlords that are committed to the buy-to-let sector for the long-term will probably welcome TMW’s new 10-year fixed rate mortgage, at 3.49% for borrowers with a 75% LTV.
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 cash flow and access competitive buy-to-let mortgage rates.”
Catering for landlords with 10 or more properties
TMW has also launched a buy-to-let arm to service landlords with 10 or more mortgaged properties. Recognising the specialist needs of landlords with large property portfolios and those using limited companies to manage them, they have a selection of products available for purchase, remortgages and further advances at 75% and 80% LTV.
The new remortgage products start at a rate of 2.34% for a 2-year fixed rate at 65% LTV with a £995 arrangement fee, free standard valuation and free legal. For purchases or remortgages up to 75% LTV, rates start at 2.59% with a £995 fee, free standard valuation and £250 cashback. For the 5-year fixed-rate products, remortgage rates start at 2.79% for up to 65% LTV with a £995 fee, with free standard valuation and free legal.
“As part of our commitment to landlords and brokers, we recognise both the specialist needs of those landlords with larger portfolios and those using limited companies and the extra work involved as a result for brokers supporting them,” added Paul Wootton.