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The Mortgage Works breaks "the all-important sub-4% barrier"

Journalist: Justin Moy, Contributing Editor

ended 25. March 2024

The Mortgage Works have just announced rate cuts across their buy to let range, with a headline 3.99% fixed for 5 years option, as well as other improved rates. As one of the UK's leading buy-to-let lenders, Newspage asked brokers if this is more evidence of lenders reacting to last week's Bank of England minutes and the lower than expected inflation data. Their views are below.

10 responses from the Newspage community

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Editor
Darryl Dhoffer
Founder at The Mortgage Geezer
Buy-to-let mortgages have been dropping for some time now. Who would have thought that a headline buy-to-let rate of 3.99% would be cheaper then a standard residential mortgage rate? Fair play to The Mortgage Works. Let's hope big brother, Nationwide, wake up and start reducing residential interest rates.
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Amit Patel
Adviser at Trinity Finance
Eggcellent news for landlords as TMW announce the launch of a product below 4%. We need more competitive rates to help ease the burden on landlords who have had to ride a rough storm for a number of years now. Hopefully other lenders will come out of their shells and announce some eggstra-ordinary rates over the coming days.
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Gary Bush
Financial Adviser at MortgageShop.com
The Mortgage Works, a division of Nationwide, breaks cover and drops its buy-to-let mortgage rates. One has gone down to just 3.99% for a 5-year fixed rate, breaking the all-important sub-4% barrier. It's great to see the return of fixed rates with a 3 at the beginning of them. Watch this space as more cuts from other lenders are almost baked in.
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Ying Tan
CEO at Habito
This is a great statement of intent and a decisive move by The Mortgage Works. A sub-4% rate is an important psychological barrier to overcome, and no doubt others will follow suit. This will bring joy to landlords accross the country. The Easter bunny has finally arrived.
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Charles Breen
Founder at C B
This is a master stroke from The Mortgage Works, relieving the pressure on landlords and tenants alike. Hopefully other major buy-to-let lenders will follow in reducing their own rates. As one of the biggest lenders in the buy-to-let space, this is an encouraging sign for borrowers.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
Finally, some sense from a lender. While others dither TMW is getting on and doing it. Their rates were already favourable so this is great for the rental market, both landlords and tenants.
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Justin Moy
Managing Director at EHF Mortgages
Great to see one of the larger mortgage lenders react to the Bank of England’s mood of optimism, which has lowered swap rates over the past few days. A sub-4% BTL for the landlords will definitely catch the investor's eye. Let’s hope similar residential rate cuts are just around the corner.
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Ben Perks
Managing Director at Orchard Financial Advisers
The headline rate of 3.99% fixed for 5 years is extremely competitive in the buy-to-let space. It's great to see lenders responding positively to the reduction in swap rates. Hopefully this is just the start.
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Elliott Culley
Director at Switch Mortgage Finance
Welcome news for landlords as TMW make rate reductions across their product range. TMW have a reputation for offering some of the more competitive rates in the market and it's no suprise to see them being the first to act in this space since the positive news on inflation.
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Robert Timm
Managing Director at Sunland Mortgages
In the week where we have Good Friday, it’s proving to be a very good Monday as another major lender chops rates. Whisper it only but things are starting to look up.