Nationwide Building Society's mortgage lender has slashed interest rates once again across its range of products in a boon for property buyers.
The Mortgage Works' (TMW) is reducing rates by up to 0.45 percentage points across its product ranges from today.
First time buyers and second time buyers can benefit from competitive low rates as the Building Society offers mortgage deals starting from 3.49 per cent.
The new rates include:
- Two-year fixed rate (purchase and remortgage) buy-to-let at 3.49 per cent with a three per cent fee, available up to 65 per cent LTV (reduced by 0.05 per cent )
- Five-year fixed rate (purchase and remortgage) limited company buy-to-let at 4.59 per cent with a five per cent fee, available up to 70 per cent LTV (reduced by 0.25 per cent)
- Five-year fixed rate (purchase and remortgage) limited company buy-to-let at 4.99 per cent with a three per cent fee, available up to 75 per cent LTV (reduced by 0.30 per cent)
- Two-year fixed rate (purchase and remortgage) limited company houses in multiple occupation (HMO) at 4.94 per cent with a three per cent fee, available up to 75 per cent LTV (reduced by 0.45 per cent)
Interest rate hikes have pushed up mortgage repayments for many GETTY Following the Bank of England's decision to cut the base rate to five per cent, many lenders have entered rate wars to ensure they remain competitive in the market.
With the consumer price index (CPI) easing to the Bank's desired target of two per cent, analysts are pricing in more rate cuts from the MPC in the later half of the year.
This would offer much needed relief for homebuyers and those hoping to get on the property ladder.
Joe Avarne, Senior Manager, Buy-to-Let Mortgages at The Mortgage Works, said: “We are pleased to announce more rate cuts as it further demonstrates our ongoing commitment to brokers and landlords.
"These latest reductions make us most competitive buy-to-let mortgage lenders in the sector with rates now starting from 3.49 per cent."
The cut, from 5.25 per cent to five per cent, should translate into lower borrowing costs for homeowners with a base rate tracker mortgage, or whose monthly payments are linked to their lender’s standard variable rate (SVR).
However, almost seven million of the UK’s 8.4 million existing residential mortgages are on a fixed rate, so most people won’t see any change.
Brokers say more lenders are likely to “join in” on rate cuts, in good news for those looking to buy a home.
David Hollingworth of L&C Mortgages said: "“I’d fully expect further improvements and more lenders looking to break through to sub-4 per cent five-year rates
“It continues the edging down in rates and there’s likely to be more looking to join in.
"The cut to base rate last week came sooner than many had expected and that should strengthen anticipation that another cut comes before the end of the year.
“The Bank of England has been keen to downplay that cuts will come thick and fast, but this should help to reduce costs for lenders”.
