TMW throws lifeline to landlords with up to 0.75% off fixed rates

The Mortgage Works have just announced up to 0.75% off their new business buy-to-let fixed rate product range. With a number of sub-5% deals and cheaper rates overall, brokers said it could be a lifeline for some landlords, but questioned why the rates weren't available to existing borrowers.

With 5-year fixed rates at 4.84% up to 55% LTV and 4.89% up to 65% LTV, Darryl Dhoffer, mortgage expert at The Mortgage Expert, welcomed the news: "The Mortgage Works are definitely moving in the right direction with these deals. They will provide some relief for landlords. Yes, it might be too little too late for some landlords who have exited the market, but it could pave the way for aspiring landlords waiting in the wings, and help those who are still operating."

Justin Moy, managing director at EHF Mortgages, said it could offer a lifeline for some landlords: "It's great to see further cuts on TMW's buy-to-let mortgage deals. This move will help some landlords afford to keep properties they may have been planning to sell as a result of recent high rates. Lenders driving the cost of borrowing down should encourage the rest of the market to follow suit, and hopefully soon. A potential lifeline for the UK's beleaguered landlord community."

Gary Bush, financial adviser at MortgageShop.com, agreed that other lenders are likely to follow suit: "Buy-to-let mortgage rates sub-5% from a division of Nationwide Building Society is fantastic news obviously, especially with drops as significant as this. More are now likely, as the lender rate war rolls on."

But Steven Hargreaves, mortgage and protection adviser at The Mortgage Co, said the fees — of 3% — were an issue: "Again, more proof, if it were needed, about the rate war and lenders cutting their margins to secure their share of the autumn mortgage market. The headline rates look good, but the fees are a bitter pill to swallow."

Anil Mistry, director at RNR Mortgage Solutions, urged TMW to look after its existing borrowers as well as new ones: “This is great news for newcomers at The Mortgage Works, but they also need to look after their existing borrowers. Most of their recent updates have been about lowering rates for new customers. However, since October 2022, remortgaging has become more challenging due to stricter stress tests. Many borrowers have no choice but to stick with their current lender, and TMW needs to pay more attention to this situation and reduce rates for existing customers.”

Mistry's views were echoed by Riz Malik, founder at R3 Mortgages: “TMW has set the bar here but I do not think many will follow anytime soon. We need lenders to be as committed to the buy-to-let sector as they are to the residential market and offer fair treatment to existing customers as well as new ones.”

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