A major buy-to-let lender has reduced its headline mortgage rate below 3% in a move that, it is hoped, will attract more landlords to the private rented sector.
The Mortgage Works announced cuts to most of its buy-to-let rates, with its most eye-catching offer at 2.99% for a two-year fixed rate deal.
Hefty fee
Mortgage brokers welcomed the move, but warned there is a hefty fee with the cheapest rate.
Only this week, mortgage lenders reported a significant influx of first-time landlords as mortgage rates fall.
Foundation Home Loans said that first-time landlords now make up 24% of its overall business this year, up from 21% in 2024.
The eye-catching 2.99% product will whack you with a 3% fee.”
Commenting on The Mortgage Works rates, Ben Perks, MD at Orchard Financial Advisers, says: “The eye-catching 2.99% product will whack you with a 3% fee for the privilege.
“Still, it’s good to see rates dropping in the buy-to-let space, which is often neglected these days.”
Pete Mugleston, MD at Online Mortgage Advisor, says: “While the 2.99% headline looks great, the 3% fee is the sting in the tail, and may catch a few people out if they aren’t careful.
“Still, this is arguably more good news than bad, and will be welcome relief for many landlords who’ve had a tough time of late.”
TMW [The Mortgage Works] slashing Buy to Let rates to 2.99% is a shot in the arm for landlords.”
And Ranald Mitchell, Director at Charwin Mortgages, says: “TMW [The Mortgage Works] slashing Buy to Let rates to 2.99% is a shot in the arm for landlords, and a clear sign that the BTL market is hotting up.
“But let’s be clear, cheaper mortgages won’t mean cheaper rents. After years of rising costs, tax hikes and regulatory pressure, landlords are still in recovery mode.
“Most will use this breathing room to rebuild margins, not cut rents. That said, improved affordability and lender competition could finally spark the resurgence this market desperately needs,” he says.
