The Mortgage Works will launch a 55% loan-to-value buy-to-let range for new and existing customers, which covers house purchases and remortgages tomorrow (30 March). 

The new 55% LTV products include: 

• A five-year fixed-rate BTL loan at 4.09%, with a 3% fee 
• A five-year fixed-rate BTL deal at 4.44%, with a £1,495 fee 
• And a five-year fixed-rate BTL offer at 4.74%, with no fee 

The Mortgage Works director of landlord Dan Clinton says: “In recent times, we have seen an increasing demand in the market for low loan-to-value products, which is why we’re pleased to be able to support landlords who have significant deposits with competitive products.” 

The move comes as landlords have seen the cost of their monthly BTL mortgage interest payments on an average UK home jump by 75.7% over the last year, according to analysis from Octane Capital.  

The average BTL investor has borrowed £217,364 after placing a 25% deposit on the current average property price of £289,819, says the specialist lender.    

The average interest-only monthly repayment – the class of mortgage generally used by landlords — has climbed to £964 per month, an annual increase of 75.7%, or £415 per month. 

However, fresh data from Zoopla shows that annual UK rents have slowed to 11.1%, or an average of £1,078 per month, in the first quarter of the year, but the online property firm adds that private sector cost for tenants will “continue to run well ahead of earnings growth” this year.    

The group says that private sector rents have “been running hot for two years”, boosted by a strong labour market, high immigration and tight supply.