The Mortgage Works launches new buy to let mortgage

14 January 2009

The Mortgage Works (TMW), the specialist lending subsidiary of Nationwide Building Society, has launched a new two-year fixed-rate buy to let product and reduced its five-year fixed-rate buy to let products.

The new two-year fixed-rate buy to let product has an initial pay rate of 4.69%, a 2.5% fee (minimum £595) and is available up to 60% loan-to-value. The five-year fixed-rate buy to let product for new business now has an initial rate of 5.68%, while the five-year easy remortgage product has been reduced to 5.78%. Both products have a 2.5% fee (minimum £595) and are available up to 70% loan-to-value (70% to £350,000, 65% to £1,000,000, 50% to £1,500,000). These products are not available to limited companies.

All TMW products now have a follow-on rate of Bank Base Rate plus 2.99%, while the end date for all products has been extended until the end of March.

Tracker rate products will also reduce by 0.5% in line with last week's bank base rate cut, meaning TMW's one-year tracker-rate buy to let mortgage now has an initial pay rate of 3.49% (Bank Base Rate plus 1.99%) with a 3.5% fee (minimum £595).

Commenting, Andy McQueen, managing director of The Mortgage Works, said: "The availability of a one-year tracker-rate buy to let product at 3.49% is evidence that some borrowers could benefit from variable-rate deals in the current environment. For landlords who prefer to fix their payments, the reduction in pay rates on our five-year fixed-rate products may prove attractive."