The Mortgage Works, the buy to let lender owned by Nationwide Building Society, has been quick to reduce rates on buy to let finance following the referendum vote to leave the European Union.
Rates on two year, three year and five year mortgages have all been cut on both buy to let and let to buy offerings.
Some two year fixed term mortgages at 65 per cent loan to value have been reduced by up to 0.20 per cent and 75 per cent loan to value by as much as 0.70 per cent.
Three year fixed rate mortgages at 65 per cent loan to value have also been cut by 0.30 per cent, and five year fixes drop by up to 0.65 per cent.
Let to buy mortgage rates have dropped the most, with rates reduced by up to three quarters of a point (0.75 per cent).
The Mortgage Works led the way in increasing the amount of rent needed to cover the mortgage on all buy to let products recently, with the rental cover requirement rising from 125 per cent to 145 per cent following the announcement of landlord tax relief changes. So these reductions will be well received by buy to let investors to at least reduce one of the ever increasing costs landlords have to bear.
Managing director of The Mortgage Works, Paul Wootton, commented: ‘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.’
Other buy to let lenders will be expected to follow suit.
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