The Mortgage Works has revealed it will be reducing buy to let mortgage rates by as much as 0.85 of a percentage point in preparation for the year ahead. Price cuts will be applied to both fixed and tracker products, predominantly affecting 2 year products at up to 75%, while switcher rates will be cut by up to 0.2 of a percentage point.
2 year fixed and tracker buy to let products with a 2.5% fee will now be reduced by 0.5 of a percentage point to 2.49% and 2.24% respectively. Flat fee products have also witnessed a cut of 0.85 of a percentage point with rates now starting at 2.79%. These changes come with the launch of a new zero-fee product at 3.69%, as well as a 2 year tracker fixed rate product with a £995 or £1,995 fee.
Further cuts to TMW product range include 2 year remortgage and let to buy products by 0.95 of a percentage point, with rates now standing at 2.89% for up to 75% loan to value (LTV). Having previously launched let to buy products earlier in the summer, 2 and 5 year fixed rates with a £995 product fee remain on offer. Free standard valuation is also available for all let to buy borrowers.
The latest rates from TMW come with the intention to provide wider choice and competitive rates for landlords looking to maximise their cash flow or minimise up-front costs. The lender’s let to buy mortgage deals can also be coordinated with a residential mortgage application.
The Mortgage Works has proved itself as one of the biggest buy to let lenders of late, currently boasting the lowest 2 year tracker at 75% LTV on the market (for those prepared to stump up the 2.5% fee), which comes with a range of rate/fee combinations. Its 2 year fix at 2.49% with a 2.5% fee also places well, however the likes of Accord are set to bring strong competition, now offering 2 year fixes from as low as 2.19% with a £2,635 fee.