TMW, a well-known mortgage provider, has announced a significant rate reduction for limited company mortgages. This is particularly relevant for landlords and investors who operate through a corporate structure. Here’s what you need to know:

• Five-Year Fixed Rates: TMW has decreased its five-year fixed rates for limited companies. Previously higher, these rates now stand at a more attractive 4.99%. However, it’s important to note that this comes with a 5% fee and is applicable up to a 70% loan-to-value (LTV) ratio. In simple terms, this means if you’re borrowing up to 70% of your property’s value, this rate applies.
• An Alternative Option: For those seeking a slightly higher LTV, TMW offers another five-year fixed-rate mortgage. This one stands at 5.54% but with a lower fee of 3%, applicable up to a 75% LTV. This option was reduced by 0.15%.

Let-to-Buy Mortgages: Reduced Rates

Let-to-buy mortgages are a popular option for landlords who want to rent out their existing home and buy a new one. TMW has made adjustments here too:

• Two-Year Fixed Rates: For let-to-buy remortgages, TMW now offers two-year fixed rates at 4.84% for up to 65% LTV and 4.99% for up to 75% LTV. Both options include a 3% fee. These rates have seen a reduction of 0.20%.

Expert Insight from Daniel Clinton

Daniel Clinton, the head of specialist lending at TMW, sheds light on these changes. He emphasizes that TMW is committed to remaining a competitive mortgage provider for all types of landlords. The recent rate reductions are a part of this commitment, focusing on supporting both the limited company market and the let-to-buy market. These changes are designed to help landlords manage their finances more effectively through fixed-rate mortgage options.

What This Means for You as an Investor

If you’re a property investor or considering becoming one, these changes could be significant. Reduced rates mean lower monthly payments and potentially higher profitability on your rental properties. It’s essential to consider:

• Your Investment Structure: If you’re investing as a limited company, these rate reductions could offer more cost-effective borrowing options.
• Your Property Plans: If you’re considering a let-to-buy mortgage, the new rates present an opportunity to reassess your financial strategy.