Copy article

Major lender launches sub-3% buy-to-let rate, but broker warns "it is important to read the small print"

Journalist: Justin Moy, Contributing Editor

ended 30. April 2025

Major buy-to-let lender, The Mortgage Works, has this afternoon announced cuts across the majority of its buy-to-let rates, with the headline rate at 2.99%. Brokers welcomed the cuts but one warned that “the eye-catching 2.99% product will whack you with a 3% fee for the privilege”. Another added that these lower rates won't necessarily mean cheaper rents: “After years of rising costs, tax hikes and regulatory pressure, landlords are still in recovery mode. Most will use this breathing room to rebuild margins, not cut rents.” Views below.

6 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Harps Garcha
Director at Brooklyns Financial
The Mortgage Works has launched a great headline rate, but as always it is important to read the small print. If you are comfortable with a 3% lending fee, this could be an excellent product. That said, a 3% fee is now fairly common in today’s market. Recent weeks have seen mainstream buy-to-let lenders either launch more attractive rates or relax their lending criteria. As a result, many landlords may finally feel able to lift their heads above water and take a much needed breath.
Star Quote
Copy

Editor
Ben Perks
Managing Director at Orchard Financial Advisers
If it sounds too good to be true, it often is. The eye-catching 2.99% product will whack you with a 3% fee for the privilege. Still, it’s good to see rates dropping in the buy-to-let space, which is often neglected these days.
Star Quote
Copy

Editor
Justin Moy
Managing Director at EHF Mortgages
Plenty of good choices from The Mortgage Works. Those highlighted low rates are coupled with higher fees, so borrowers need to be sure what is important to them — lower payments or the cheapest deal, as both are not the same. But TMW's 5-year deals, where much of their business is booked due to affordability, are better priced for limited companies as well as private landlords. Look beyond the shop window, and you will see some genuinely good opportunities.
Copy

Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
TMW slashing Buy to Let rates to 2.99% is a shot in the arm for landlords and a clear sign that the BTL market is hotting up. But let’s be clear, cheaper mortgages won’t mean cheaper rents. After years of rising costs, tax hikes and regulatory pressure, landlords are still in recovery mode. Most will use this breathing room to rebuild margins, not cut rents. That said, improved affordability and lender competition could finally spark the resurgence this market desperately needs.
Copy

Editor
Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
This is a classic case of giving with one hand and taking away with the other. While the 2.99% headline looks great, the 3% fee is the sting in the tail and may catch a few people out if they aren't careful. Still, this is arguably more good news than bad, and will be welcome relief for many landlords who've had a tough time of late. It's another clear sign that rates are heading in one direction: down.
Copy

Platinum
Elliott Culley
Director at Switch Mortgage Finance
The Mortgage Works are a big player in the buy-to-let market, so to see rates reducing is an encouraging sign. Other lenders are also reducing their rates in this space, which is great to see as buy-to-let is usually a week or two behind the residential market in making significant changes.