Buy to let mortgage rates cut by TMW

The Mortgage Works (TMW) has cut interest rates across some buy to let mortgages and launched a new fixed rate deal.

Rates are down by 0.5% on mortgages for first landlords, let to buy borrowers and those offering free valuations and legal fees.

The new fixed rate is 4.99% at 50% loan-to-value over five years with a 3.5% arrangement fee.

Tracie Pearce, TMW’s head of product management and pricing, said: “It is widely expected that base rates will start to rise again later this year. Our new five-year fixed rate product may appeal to those customers looking to manage the effects of rising rates on their monthly mortgage repayments.”

Mortgage Trust has also released details of a two-year tracker at LIBOR plus 3.09%. The current rate is 3.99% as LIBOR is .9%.

Loan-to-value is 75% with 125% rent cover.

Valuation and legal fees are free, subject to conditions, and the arrangement fee is £999 with a £99 booking fee.

Precise Mortgages is to offer short-term bridging loans – although a launch date remains to be confirmed.

Managing director Alan Cleary said: “We have researched the market and believe we have the funding and expertise to make a significant impact.”

Buy to let lending figures revealed

Meanwhile, Nationwide Building Society, which lends under the TMW brand to buy to let landlords, has released preliminary trading figures for the 12 months ending April 4.

Buy to let lending was £3 billion – up from £1.7 billion in the previous year.

Part of the rise can be attributed to Lloyds TSB withdrawing from buy to let in September 2010, leaving TMW as the largest lender in the sector.

Around 2.47% of specialist mortgages are three months or more in mortgage arrears. The nationwide says buy to let makes up about 72% of this total. The industry average is 3.31%.

“Buy to let repossessions stood at 989 (2010: 1,088) properties, representing 0.07% of our book (2010: 0.08%), this still compares favourably with the industry measure of 0.12% (2010: 0.13%),” said the report.