Buy-to-let mortgage rates have become increasingly attractive, with some lenders cutting them by up to 0.75 per cent.
So whether you’re remortgaging or buying another buy-to-let, it is worth checking out the new rates to see what money you can save on your monthly mortgage payments.
If you can save money on what you’re paying out, it means you can keep more of the money that you collect in rent from tenants every month.
The Mortgage Works’ rates: now some of the lowest in the market for landlords
One of the lenders to cut rates last week was The Mortgage Works (TMW), the buy-to-let lending arm of the country’s biggest building society, Nationwide.
It reduced rates on its range of buy-to-let (and let-to-buy products for those people looking to rent out their existing home) across its range, including on two, three and five-year deals.
It means the rates it now offers are some of the lowest in the market for landlords.
They include two-year fixed-rate deals for those with a 35 per cent deposit being cut by up to 0.2 per cent and for those with a 25 per cent deposit by up to 0.7 per cent.
For example, TMW’s two-year fixed at 65 per cent loan-to-value is reduced by 0.1 per cent to 2.49 per cent. If you’re looking to pay a zero fee, then it would be reduced by 0.2 per cent to 2.79 per cent.
Other mortgage product rate reductions
Other products with rate reductions include a two-year fixed-rate 75 per cent loan to value with a 2.5 per cent fee, reduced by 0.4 per cent from 2.49 per cent to 2.09 per cent. If you opt for a fixed fee of £1,995, then it is reduced by 0.4 per cent to 2.39 percent. If you prefer to pay no fee, the product is reduced by 0.7 per cent to 2.99 percent.
For those who are looking for a longer-term fixed-rate product, the five-year deals at 65 per cent loan to value and 75 per cent loan to value are being reduced by up 0.65 per cent and start at 2.84 per cent and 3.24 per cent respectively.
But the buy-to-let rental cover requirement has increased…
However, there is a sting in the tail as TMW has increased the rental cover requirement from 125 per cent to 145 per cent for all buy-to-let applications. This may mean it is more difficult to get the mortgage in the first place.
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.”
Have you found a good deal on a BTL mortgage? Let us know in the comments below.