The epic turmoil of Liz Truss’s ill-fated mini-budget has given way to a calmer market for mortgage lenders, with a number of providers lowering rates throughout the country in response to a slowdown in the volatile world of financial markets.
After a sustained period of interest rates, the mortgage market is at last showing signs of recovery. HSBC, Virgin Money, Accord Mortgages, Clydesdale Bank, Coventry Building Society, Halifax and NatWest are among lenders that have cut rates, helped by the launch of new deals that include attractive offers for landlords and first-time buyers.
The base rate was increased to 3% last week, but despite this swap rates – which reflect the cost of funding – have actually come down since new PM and chancellor Rishi Sunak and Jeremy Hunt replaced Truss and Kwarteng.
The Mortgage Works
Mortgage Works have made a number of reductions to their rates today, with pricing being split between products for landlords acting as individuals and limited company. They start at 3.99% for individuals and 4.74% for limited company landlords.
Daniel Clinton, head of The Mortgage Works, said: “As one of the largest buy-to-let lenders in the UK, we are continually looking at ways we can support landlords by offering them a wide range of options. These latest reductions to our fixed rates will help those who want to maximise cashflow while maintaining certainty over their repayments.”
For individuals buy-to-let rates include: a one-year fixed at 3.99% with a 2% fee, available up to 75% LTV; a two-year fixed at 4.39% with a 3% fee, available up to 65% LTV; a five-year fixed at 4.89% with a 3% fee, available up to 65% LTV; and a two-year tracker at 3.24% (Bank Base Rate plus 0.24%) with a 3% fee, available up to 65% LTV.
For limited company landlords there is: a one-year fixed at 4.74% with a 2% fee, available up to 75% LTV; a two-year fixed at 4.99% with a 3% fee, available up to 75% LTV; a five-year fixed at 5.49% with a 3% fee, available up to 75% LTV; and a two-year tracker at 3.49% (Bank Base Rate plus 0.49%) with a 3% fee, available up to 75% LTV.
The above are available for purchase and re-mortgage with other rate/fee and benefit combinations also available.
TMW Tracker understand that, you may wish to change your tracker rate if the market conditions change or you want a lower rate. Therefore all their tracker products come with the switch to fix facility which allows customers to switch to an existing customer fixed rate at any time without incurring Early Repayment Charges.
As a result of these changes the buy to let stress rates will now be between 5.99% and 8.79% depending on the product selected.