The Mortgage Works (TMW) has reduced fixed rates across its new BTL business range by up to 95bps from Saturday 5th August 2023.
Daniel Clinton, head of specialist lending at TMW, said: “Following the rate reductions for our existing customers last week, we're continuing to demonstrate our commitment to landlords with significant rate reductions for new lending.
“As well as offering competitive rates that help landlords manage their cashflow, these reductions will help ease affordability pressures with some landlords being able to increase borrowing by 10%.”
Brokers welcomed the move, with Lewis Shaw, owner of Shaw Financial Services, saying: “It will be a welcome shot in the arm for landlords”.
Ben Tadd, director at broker Lucra Mortgages, said the move “could signal a significant milestone in the start of rate reductions in the BTL market”.
Jamie Lennox, director at Dimora Mortgages, suggested it may even see some landlords who were previously considering exiting the sector stay after all, adding: “It's great to see BTL lenders reduce rates and landlords around the country who were considering selling up may breathe a sigh of relief.”
Meanwhile, Kundan Bhaduri, director at property developer and portfolio landlord, The Kushman Group, commented: “This move signals a potential turning point for the BTL sector this year and we are considering multiple purchases currently in the pipeline, anticipating the likely reduction in mortgage interest rates.”
But some brokers were sceptical on whether other lenders would follow suit.
Stephen Perkins, MD at Yellow Brick Mortgages, added: “This is a positive step in the right direction for a market that has been badly broken by the higher rates and stress-test calculations lately.
“Hopefully, more lenders will follow suit shortly [and it’s] always interesting to see plenty of notice can be given ahead of rate reductions, but not when the shoe is on the other foot.”
