TMW latest to cut buy-to-let rates

by: Carmen Reichman
  • 08/09/2016
  • 0
TMW latest to cut buy-to-let rates
The Mortgage Works (TMW) has cut the rates on its two, three and five-year buy-to-let fixes by up to 0.35%.

The cuts were made across all loan to value (LTV) tiers, bringing its two and five-year products to their lowest ever rates.

TMW has also introduced new options for landlords, including expanded choices on two and five-year deals as well as a fee-free option.

Managing director Paul Wootton said: “TMW is looking to increase the competitiveness of its fixed-rate mortgages for two year, three-year and five-year terms, helping to support landlords maintain a positive cash flow and help manage their costs.

“We are also expanding the options for landlords with a variety of new products and varying fees, minimising upfront costs where needed with zero-fee options and free valuations and legals, while offering increased payment security.”

Among the firm’s new products are a two-year fixed rate mortgage with a 2% fee at both 65% and 75% LTV. The 65% fixed rate now starts at 1.79%, making it the lowest headline rate that TMW has ever offered.

In addition, TMW introduced a new five-year fixed rate with a 2% fee, for which rates start at 2.79%. Meanwhile it cut the existing five-year fixes by up to 0.1%, which come with a flat-fee option of £1995 and £995 respectively.

Overall, TMW cut its 75% LTV fixes by up to 0.20%, starting at 2.14%. It also launched new remortgage and tracker products, which come with a range of rates starting at 1.74%.

Helping landlords

TMW was not the first lender to cut rates on its buy-to-let range in the wake of Brexit and recent government tax changes.

Earlier in September, specialist lender Together reduced the rates of its buy-to-let light plan product by 0.65%. Rates now start from 7.15%, with affordability based on a 120% rental coverage.

Dudley Building Society also launched a new version of its BTL range in September, including new products, rate reductions and criteria changes.

The firm’s reduced rates start at 2.99% while fixed rates were reduced by 0.30%. Dudley brought to market new three and five-year discounted products and removed early repayment charges on select products.

The lenders said they wanted to encourage landlords after they had been “in the firing line” over the past 12 months.

The market was hit after the government introduced a 3% Stamp Duty hike on second homes in April and revealed it was planning further cuts to landlord tax relief from next year.

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