In a bold move that’s set to shake up the buy-to-let mortgage sector, The Mortgage Works (TMW), Nationwide Building Society’s dedicated arm for property investors, has just announced a significant drop in its rates for new customers. With cuts of up to 0.15%, these new rates are not just a minor adjustment; they are among the most competitive in the market today.

Joe Avarne, the senior manager for buy-to-let mortgages at TMW, expressed his excitement over these changes, stating that TMW’s new rates, starting from a low of 3.54%, are expected to be some of the lowest available. But what does this mean for landlords and prospective property investors?

The Finer Details

1. Two-Year Fixed Rates: For those looking to secure their mortgage payments for the next two years, TMW is offering rates starting at 3.54% for loans up to 65% of the property’s value (known as Loan to Value or LTV). However, this comes with a 3% fee. For those borrowing up to 75% LTV, the rate is slightly higher at 3.94%, accompanied by a fee of £3,995.
2. Five-Year Fixed Rates: For those planning for the longer term, TMW has also reduced its five-year fixed rates. Now, you can lock in a rate of 3.84% for loans up to 55% LTV, along with a 3% fee.

A Versatile Offer

An important aspect of these new rates is their flexibility. They are available for both new property purchases and remortgaging. This opens up opportunities for a wide range of landlords, whether they’re expanding their portfolio or looking to get better terms on their existing properties.