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TMW Rate Reductions - Is This A Boost For BTL?

Journalist: Riz Malik

ended 27. September 2023

TMW has announced that from tomorrow they are reducing selected New Business rates across our Limited Company and HMO product ranges.

Product Highlights - Limited Company
  • 5-Year Fixed 5.44% up to 70% LTV with a 5% fee
  • 5-Year Fixed 5.69% up to 75% LTV with a 3% fee
  • 5-Year Fixed 6.24% up to 75% LTV with a £1495 fee

Further information is available here.

What does this mean for the Ltd company BTL and HMO? Please share your thoughts.

 

 

6 responses from the Newspage community

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Editor
Justin Moy
Managing Director at EHF Mortgages
Great to see a high-profile lender like The Mortgage Works cut their rates for the specialist Buy to Let Landlords, often the last group of borrowers to benefit from these reductions. We are moving to a pricing wart that will start to encourage remortgages over Product Transfers, which will be pleasing to the professional landlord looking for opportunities to buy.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Limited company landlords are the ones that have been hit the hardest with sky-high arrangement fees in the last year. It is therefore encouraging for lenders like TMW to offer some fixed fee options as well as fees that are a percentage of the loan amount.
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Craig Fish
Director at Lodestone Mortgages
The goodwill to offer lower rates is commendable but can we please do away with the extortionate fees? Customers see through headline rates, so no this isn't a boost for the BTL market at all what is needed is an adjustment in the ICR calculations, otherwise, clients are just going to be stuck with their existing lenders and the purchase activity will remain at non-existent levels.
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Ian Rogers
Owner at CA Mortgage Services
The quick answer at those eye watering arrangement fees is a definate NO.
Who are they trying to kid and to put an ad out like this is laughable.
How anyone can see this as a positive is simply deluded.
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Steven Hargreaves
Mortgage and Protection Adviser at The Mortgage Co
Whilst any interest rate reduction is welcome, especially in the beleaguered buy-to-let market, the associated product fees with some of these products seem excessive.
It is evidence of the lender's rate war that seems to be creating some traction, they are forcing other lenders to cut not just rates but their margins to get the Buy-to-Let market moving again.
Discussing this latest news, rates and fees with some of my long-term experienced landlords, it isn't currently getting them to rush out and buy more properties to rent with the fees attached to these current batch of rates.
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Amit Patel
Adviser at Trinity Finance
Lenders should be given a pat on the back for rate reductions but what landlords are craving are sensible arrangement fees. Whilst landlords can add the fees to the loan amount this does put them in a precarious situation when they come to re-finance at the end of their fixed rate period.