TMW 1year 1% existing customer BTL switch product

TMW 1year 1% existing customer BTL switch product

9:27 AM, 4th June 2020, About 4 years ago 3

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The Mortgage Works (TMW) yesterday launched a Buy to Let switch option for existing customers coming to the ending of their initial deal product terms.

To support their existing customers during the emergency lockdown they are also expanding the whole range of switcher products to offer landlords more options to manage their cashflow through the emergency

The product is:

  • 1 Year 1.00% Fixed until 31/08/2021, reverting to the TMW managed rate currently 4.74% variable
  • Maximum 65% Loan to Value
  • 2% arrangement fee
  • 1% penalty until 31/08/2021
  • Overall cost for comparison is  4.7% APRC 

Click here to download the full range of existing customer switch rate options

Nationwide’s director of mortgages, Henry Jordan said: “The impact of Covid-19 has led to uncertainty in the property market and some landlords are looking to manage their cashflow as they navigate the coming months.

“Some may be reluctant to lock into a long term mortgage deal, so the Society has introduced a new one-year fixed mortgage with its lowest ever rate, to support these landlords.”

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Laura Delow

11:12 AM, 4th June 2020, About 4 years ago

Sounds like a false economy to me & a marketing ploy i.e. "we're here to help landlords" but 65% loan to value max is probably due to the stress test at their variable rate at 125% (basic rate tax payer) or 145% (higher rate) & although an interest rate of 1% sounds great it's not really when you consider the exceptionally low interest rate climate is a given for at least the next 12 months, so no real deal here, but where they really get you is the 2% arrangement fee upfront (and probably interest on it if added to the loan) which a borrower will be paying again albeit may be a lower rate after 12 months if they product transfer which benefits TMW twice in just 12 months 1 day unless the borrower remortgages away. I think someone would be better off taking at least a 2 year fix of circa 1.3 - 1.6% interest rate with another lender offering a lower arr fee of circa £1500 or even a 5 year deal where the affordability assessment calc is more favourable & allows a higher LTV if needed & saves the borrower 2 lots of arr fees in-between.

Dylan Morris

11:26 AM, 4th June 2020, About 4 years ago

Sounds a rubbish deal to me. I’ve recently moved my BTL Flexi Rate 3.54% (similar to an SVR) with Coventry BS on to their 2.19% Five Year Fixed and there was no product fee or any other fees. Admin was a piece of cake, sent me docs via email which I signed with DocuSign returned and in 24 hours job done.

Simon Williams

12:24 PM, 4th June 2020, About 4 years ago

Generally a fan of TMW, but their switch rates are often significantly higher than their rates to new lenders, so when you need to switch in a year's time, you will be stung. The Coventry switch sounds very good by contrast and looks similar to what's on offer for new borrowers - so a good, transparent, deal.

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