The Mortgage Works (TMW) has rolled out significant rate cuts on its Buy to Let Switcher range. This development, effective from Friday, 13th October 2023, could be useful for landlords aiming to swap their existing mortgages for more favourable terms amid an ever-competitive market.

TMW: Championing More Competitive Mortgage Options

TMW has unveiled a reduction of up to 0.25 percentage points across various mortgage products in its Buy to Let Switcher suite. This adjustment encompasses both fixed and variable products, diversely tailored with varying fees and loan-to-value (LTV) ratios to fit unique investor profiles.

Dan Clinton, the head of TMW’s specialist lending division, expressed that this strategic move underscores the firm’s dedication to landlords. “We’re sharpening our competitive edge, fully aware that these new rates will be music to the ears of buy-to-let investors. Our goal is to bolster landlords in navigating their cashflow needs via stable, fixed rates,” Clinton said.

Spotlight on the New, Reduced BTL Switcher Rates

These rate revisions are not just slight tweaks but substantial changes that could significantly impact a landlord’s bottom line. Here are some key takeaways from the newly introduced rates:

• Two-Year Fixed Products Take a Favorable Turn: Landlords can now access a two-year fixed product at a 4.94% interest rate (a reduction of 0.10 percentage points), with a 3% fee, accommodating up to 65% LTV. Another option sits at 5.84%, down by a substantial 0.25 percentage points, carrying a £1,495 fee, also available up to 65% LTV.
• Five-Year Fixed Products Get a Warm Welcome: On the longer-term end, a five-year fixed product is now pegged at 4.99% (previously down by 0.20 percentage points) with a 3% fee, suitable for up to 55% LTV. Alternatively, there’s a 5.34% option, down by 0.10 percentage points, with a £1,495 fee, available for up to the same LTV.

What Should Landlords Do?

It’s advisable to compare these new offerings from TMW with existing mortgage terms to discern potential benefits.

Remember, while a lower interest rate is enticing, it’s imperative to consider the overall cost of the mortgage, factoring in fees and potential charges that could accrue over the mortgage term. A lower rate might not always equate to a better deal in the long run, especially when higher fees are involved.