The Mortgage Works will loosen the flat stress rate of 8.49% it introduced during the turmoil in the lending markets earlier this month.  

The specialist buy-to-let arm of Nationwide Building Society says from tomorrow (26 October) that fixed rates for products under five years for non-limited companies and limited companies is, pay rate plus 2.00%.  

Fixed rates for products that run for five years or more for non-limited companies is, pay rate plus 1.50%, and for limited companies is, pay rate plus 0.50%.  

And tracker and variable rates for non-limited companies is, pay rate plus 5.00%, and for limited companies is, pay rate plus 4.00%.   

The firm says that based on this current range, its BTL stress rates will range between 6.64% and 8.79%, depending on the product.  

The Mortgage Works head Daniel Clinton says: “Earlier this month we adopted an interim measure of applying a flat minimum stress rate for BTL mortgages to better protect landlord cashflow during the period of interest rate turbulence.   

“We have now reviewed our stress rates and we are moving to a more tailored approach based on the product type and term.”  

The unit adds it will also temporarily withdraw its buy to let tracker range and lifetime variable product from tomorrow.