Nationwide Building Society, a prominent mortgage lender, has recently announced a reduction in interest rates for specific products, indicating their commitment to both brokers and landlords. The Mortgage Works, a subsidiary of Nationwide, is decreasing rates on their Buy-to-Let deals by up to 0.25 percent, with rates now commencing at 3.54 percent.
This development occurs just over a week before the Bank of England is scheduled to make its next Base Rate decision, which could potentially have further repercussions on mortgage rates. Joe Avarne, a senior manager in buy-to-let mortgages at The Mortgage Works, articulated their dedication to brokers and landlords by articulating, “We are delighted to announce further rate cuts to illustrate our ongoing commitment to brokers and landlords. These recent reductions position us as one of the most competitive providers of buy-to-let mortgages in the sector, with rates now commencing from 3.54 percent.”
For those interested in buy-to-let properties, the new business buy-to-let rates being offered include:
– Two-year fixed rate (purchase and remortgage) at 3.54 percent with a three percent fee, available up to 65 percent LTV (reduced by 0.15 percent)
– Five-year fixed rate (purchase and remortgage) at 3.94 percent with a three percent fee, available up to 65 percent LTV (reduced by 0.10 percent)
– Five-year fixed rate (purchase and remortgage) at 3.99 percent with a three percent fee, available up to 75 percent LTV (reduced by 0.15 percent)
– Five-year fixed rate (purchase and remortgage) at 4.44 percent with a £1,495 fee, available up to 65 percent LTV (reduced by 0.25 percent).
Moreover, The Mortgage Work’s new buy-to-let switcher rates comprise:
– Two-year fixed rate at 3.84 percent with a three percent fee, available up to 55 percent LTV (reduced by 0.05 percent)
– Two-year fixed rate at 3.84 percent with a three percent fee, available up to 65 percent LTV (reduced by 0.05 percent)
– Five-year fixed rate at 4.74 percent, with no fee, available up to 55 percent LTV (reduced by 0.05 percent).
Nationwide’s announcement follows a trend of mortgage lenders, such as TSB, Barclays, and Virgin, making similar moves to lower interest rates in recent weeks. Andrew Montlake, managing director at Coreco, commented on the ongoing trend, stating, “The competition between lenders continues to simmer during the summer season as SWAP rates continue to drift down gently. This gives lenders room for manoeuvre and, after a slow pre-election period, lenders are keen to start motoring once more. It is still not quite an all-out rate war, but these initial skirmishes are intensifying.”
Emma Jones, managing director at Whenthebanksaysno.co.uk, also noted the continuous rate cuts, saying, “The rate cuts just keep on coming and it’s great to see. Mortgage lenders do not appear to be singing from the same hymn sheet as the markets.”
As buyers and investors closely monitor the evolving interest rate landscape, the latest developments from Nationwide could potentially offer more appealing options for those seeking mortgage financing for buy-to-let properties. With the market continuing to adjust in response to various economic factors, the impact of these shifting rates on potential borrowers and investors remains to be seen.