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Mortgage Works increasing rates across New Business product range

ended 02. February 2024

From Saturday 3rd February, Mortgage Works are increasing selected rates across its New Business product range. 

Is this a sign of things to come? Will other lenders start hiking rates in February?

4 responses from the Newspage community

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Akhil Mair
Director at Our Mortgage Broker
It seems the January sales frenzy has come to a close as The Mortgage Works announces rate increases across its New Business product range starting February 3rd. This move signals a broader trend in the market we are witnessing with more to come in our opinion in the short term.
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Justin Moy
Managing Director at EHF Mortgages
TMW has had some of the cheapest Buy to Let deals recently and has been quite aggressive with rater cuts over the last few weeks, so there would be an inevitable change given the uplift in SWAP costs. But to their credit, only smaller pockets of their rates are affected, typically the lowest LTV and those products with no product fee are most affected, as are the Ltd Co BTL rates. Plenty of decent options still available, but time may be short.
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Gary Bush
Financial Adviser at MortgageShop.com
Landlords are under attack from tomorrow with the latest mortgage rate increases from lender Mortgage Works - they seem to be following their sister lender Nationwide Building Society, indicating that they are attempting to slow down the level of applications they are processing. Thankfully other Buy to Let lenders are going in the other direction, decreasing their rates, which will thankfully take up the slack created by TMW's announcement this afternoon.
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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
As swap rates have now appeared to have bottomed out and stopped their march downwards, we are seeing lenders' pricing change, now less driven by the cost of their own funding, but more to manage their workflows. Previously lenders held themselves at the top of the market for too long and ended up drowning in applications, resulting in truly woeful service to brokers and borrowers. Many do not want to repeat that and are proactively managing their inflows with small increases and decreases in certain key product areas to keep themselves on an even keel.