The Mortgage Works (TMW) has cut rates on two, three and five-year buy-to-let and Let to Buy products.
Selected two-year fixed term products at 65% loan-to-value (LTV) will be reduced by up to 0.20 percentage points, and at 75% LTV by up to 0.70 percentage points. This includes the two-year fixed 65% LTV, with £995 fee, reduced by 0.10 percentage points to 2.49%, and the fixed 65% LTV with a £0 fee reduced by 0.20 percentage points to 2.79%.
Other products with rate reductions include the two-year fixed 75% LTV with a 2.50% fee, reduced by 0.40 percentage points from 2.49% to 2.09%; with a £1,995 fee, reduced 0.40 percentage points to 2.39%; with a £995 fee, reduced by 0.60 percentage points to 2.69%, and the £0 product reduced by 0.70 percentage points to 2.99%.
The five-year fixed rate products at 65% and 75% LTV are being reduced by up to 0.65 percentage points and start at 2.84% and 3.24% respectively.
The three-year fixed rate products at 65% LTV are being reduced by 0.30 percentage points, with rates starting at 2.39%. Let to Buy rates are being reduced by up to 0.75 percentage points.
TMW recently became one of the first buy-to-let lenders to increase the rental cover requirement rate from 125% to 145% for all buy-to-let mortgage applications. Rental cover is expressed as a percentage of the mortgage cost and is designed to help protect a positive cashflow for buy-to-let landlords. These changes were implemented in response to the forthcoming changes to landlord tax relief, which will start to be phased in from April 2017, when tax relief on mortgage interest will be limited to 20% by 2020.
The current tiered stressed rates will remain unchanged.
Paul Wootton, managing director of TMW, said: “TMW is increasing the competitiveness of its mortgage rates for two year, three year and five year terms, helping to support landlords maintain a positive cash flow and help to manage their costs as the tax relief changes are phased in.”