The Mortgage Works is among the first major lenders to introduce sub-5% home loans — and has also cut rates by up to 50 basis points across selected new business products.
Highlights among Nationwide’s buy-to-let arm include:
- Five-year fixed-rate purchase and remortgage loans at 4.99%, with a 3% fee, available up to 55% loan to value — reduced by 15bps
- Five-year fixed-rate purchase and remortgage deals at 5.04%, with a 3% fee, available up to 65% LTV – down by 15bps
- Five-year fixed-rate purchase and remortgage offers at 5.59%, with a £1495 fee, available up to 75% LTV — reduced by 15bps
The lender adds that it is cutting selected rates in its let-to-buy and large portfolio range by up to 40bps, and in its houses in multiple occupation suit by up to 50bps for new business customers.
The Mortgage Works head of specialist lending Daniel Clinton says: “We are pleased to announce further rate reductions following a sustained period of stability in the swap rate environment.
“These reductions will be well received by buy to let investors and provide welcomed relief over their repayments.”
Rate cuts by The Mortgage Works and Halifax this week put them among the first lenders to offer sub-5% mortgages for many months, more quickly than some commentators had forecast.
Earlier this week, property website Rightmove said sub-5% mortgage rates might come back to the market in the “next few weeks” as swap rates ease and markets bet that the Bank of England rate-raising cycle is coming to an end.
The average BTL two-year fixed mortgage rate is 6.53% today, unchanged from yesterday, according to the property website.
While the average BTL five-year fixed mortgage rate is 6.41% today, also unchanged from the previous day.
