The Mortgage Works, a division of Nationwide that focuses on buy-to-let mortgages, has announced a significant reduction in its interest rates for both new and existing landlord customers. This change, effective from 15 November, represents a strategic shift in the mortgage landscape for property investors.

Reduction in Two-Year Fixed Rates

The Mortgage Works has reduced rates on its two-year fixed mortgage products, specifically tailored for purchases and remortgages. These products now offer an interest rate of 4.34%, which is a reduction of 15 basis points (bps). This rate is applicable for loans up to a 65% loan-to-value (LTV) ratio, and comes with a 3% fee.

Adjustments in Five-Year Fixed Rates

Similarly, the five-year fixed-rate products for both purchase and remortgage have seen a reduction. The new rate is set at 4.49%, down by 20 bps, with the same 3% fee. This rate is available for loans up to a 55% LTV ratio.

Changes in Two-Year Fixed Switcher Rates

For those looking to switch their mortgage, The Mortgage Works has also adjusted its two-year fixed switcher rates. These now stand at 5.49%, a decrease of 30 bps. This option comes with a £1,495 fee and is available for loans up to a 65% LTV ratio.

Impact and Analysis

Statement from Daniel Clinton

Daniel Clinton, the head of specialist lending at The Mortgage Works, emphasized the importance of these reductions. He noted that they build upon recent enhancements, such as increasing the maximum LTV to 75% across a landlord’s portfolio. Clinton underscored the significance of interest rates in the short-term profitability of buy-to-let (BTL) investments, especially in the current economic climate.