The Mortgage Works (TMW) has reduced its five-year fixed rate mortgage products by up to 0.5 of a percentage point.
Selected 65 per cent loan-to-value (LTV) products have been cut by 0.5 per cent, starting from 2.09 per cent with a £995 fee, while selected 75 per cent LTV products have been cut by 0.15 of a percentage point, to start at 2.54 per cent with a fee of £1,995.
All 50 per cent LTV products start from 2.39 per cent, a reduction of 0.5 per cent.
In addition to this, TMW will be introducing a new range of two-year fixed rate products with a 1 per cent fee, and also fee-free options. All the products come with a free standard valuation.
The offer validity period for further advances will also be extended, from three to six months.
Two additional five-year products are being launched for landlords with more than 10 properties.
TMW is one of several lenders reducing the rates on their buy-to-let mortgages as tax changes and launching new products make investing in property less appealing.
Accord Buy-to-Let is moving into the let-to-buy space to help aspiring first-time landlords build a property portfolio. It has launched a let-to-buy product that allows them to let their existing property and buy a new residential home.
This fixed-rate deal, which has £1,000 cashback, allows new landlords to remortgage their existing property as a buy-to-let. The product is available to borrowers with at least 25 per cent equity in their property.
Loans on this product are available as a fixed rate for two years at 2.89 per cent and five years at 3.19 per cent. Both come with a £195 product fee and free standard valuation.
Provider view
Paul Wootton, managing director of TMW, comments: “The new reduced rates on our five-year fixed rate deals will mean TMW continues to have one of the most competitive options on the market for landlords.
“We always look to balance costs and flexibility so that our customers have choice, with these new products offering competitive rates for landlords looking for longer-term payment security.”
Adviser view
Phillip Lyle, director of The London Mortgage Brokers, said: “At the moment, the best buy-to-let rates are 1.37 per cent. TMW is a little bit off that in terms of the best rates in the market at 60 per cent LTV. They definitely have a place in the market, but their rates aren’t the best.”
Regarding Accord’s product, he said: “Let-to-buy was more popular when we didn’t have 3 per cent stamp duty on the purchase. It’s definitely taken a hit: more people were doing let-to-buy a year or so ago.
“In terms of interest rate, it’s not too bad at 2.39 per cent – it is 0.5 of a percentage point off the top of the market.”
