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TMW rate cuts a "lifeline for buy-to-let"

Journalist: Riz Malik

ended 06. September 2023

From Thursday 7 September, The Mortgage Works will be making changes to its New and Existing Customer product ranges, including:

  • Reductions of up to 0.50% on selected BTL and Limited Company products
  • Introduction of new Limited Company 5-year fixed options
  • Increases of 0.10% on selected 10-year fixed products

Brokers were largely upbeat. One, Riz Malik, director of independent mortgage broker, R3 Mortgages, said: "Hopefully, this will ignite more competition in a sector that, so far this year, has had limited choices without exorbitant arrangement fees. This could be a lifeline for buy-to-let."

Another, Stephen Perkins, managing director at Norwich-based Yellow Brick Mortgages, added: “These positive and significant reductions to most of TMW’s products will be celebrated by the UK's beleaguered landlords.”

But Darryl Dhoffer, founder of Bedford-based The Mortgage Expert, said the new products were bittersweet: “It's now very clear lenders are trying to fill their loan books, and these reductions are welcome. However, there are still high fees that remain a challenge for many landlords.”

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7 responses from the Newspage community

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Riz Malik
Independent Financial Adviser at R3 Wealth
There are notable discounts available for limited company borrowers, particularly those looking to secure rates for 1 to 2 years. Hopefully, this will ignite more competition in a sector that, so far this year, has had limited choices without exorbitant arrangement fees. This could be a lifeline for buy-to-let.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
These positive and significant reductions to most of TMW’s products will be celebrated by the UK's beleaguered landlords. Rate reductions across the market are continuing at pace. I'm not entirely sure why the 10-year fix is increasing given the longer term rate forecasts, but I doubt this was a popular product anyway.
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Darryl Dhoffer
Founder at The Mortgage Geezer
Grab them while you can, as they may be shortlived if inflation figures don't show a consistent decline on 20th September. It's now very clear lenders are trying to fill their loan books, and these reductions are welcome. However, there are still high fees that remain a challenge for many landlords.
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Justin Moy
Managing Director at EHF Mortgages
This is some of the most positive news landlords will have seen for a while. It's ideal timing for many landlords who are now looking for a new deal for their properties. The balance of fees and rates have long been a tough discussion with landlords. Hopefully this will see that issue subside a little, and this positivity spread to other lenders, too.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
Finally some good movement in the BTL space, even better as TMW are already sourcing at the lowest end of the market. Fees are still high for landlords, though, which needs to change for there to be an influx of business getting submitted.
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Elliott Culley
Director at Switch Mortgage Finance
Any news of a reduction in interest rates is good news in the BTL market, although the best rates will come with higher fees. The stress testing performed by BTL lenders right now is key to further improvements in this space and, hopefully, we will see some improvements over the next few weeks.
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
The reduction in TMW's rates is a positive sign, not just in the narrow sense of the rates being improved. This as one of the country's largest mortgage lenders, the Nationwide Building Society instilling a positive outlook for the mortgage market and in turn the property sector. TMW's offering is clearly the first amongst the equals in the mainstream, high-street BTL mortgage market. It is essentially a bellwether for the industry and we are confident the rest of the market will follow suit in the days and weeks ahead.