The Mortgage Works has announced that from tomorrow (Friday 9th Sept) it will be reducing rates on 2 year, 3 year and 5 year fixed rate BTL products and will open up the range of options for landlords.

All fixed rate mortgages up to 5 years across all loan to value (LTV) tiers are being reduced, offering customers the lowest ever fixed rates in the 2 year and 5 year tiers.

In addition, TMW is also widening product choice. The range of mortgages is being increased, with expanded choices on 2 and 5 year deals with a 2.00% fee, down from the previous 2.5%, as well as £0 options that are often preferred by customers with smaller loans. This is in addition to the existing £1995 and £995 flat fee options.

New mortgage products will be introduced, including a 2 year fixed rate mortgage with a 2% fee at both 65 per cent loan to value (LTV) and 75 per cent LTV. The 2 year 65 per cent fixed rate deal now starts at 1.79%, making it the lowest headline rate that TMW has ever offered.

In addition, while the existing 5 year fixed rates with a £1995 and £995 fees will be reduced by up to 0.10%, new 5 year fixed rate products with a 2% fee and £0 will be introduced, with rates starting at 2.79% – again, TMW’s lowest ever rate in this tier.

Paul Wootton, Managing Director of TMW, said: “TMW is looking to increase the competitiveness of its fixed rate mortgages for 2 year, 3 year and 5 year terms, helping to support landlords maintain a positive cash flow and help manage their costs. We are also expanding the options for landlords with a variety of new products and varying fees, minimising upfront costs where needed with zero fee options and free valuations and legals, while offering increased payment security.”

At 75 per cent LTV fixed rates are reduced by up to 0.20%, starting at 2.14%. There are also new remortgage products, with rates for the 2 year fixed rate mortgage now starting at 1.99% with free standard valuation and free legals.

New 65 per cent and 75 per cent 2 year tracker products with a range of fees are also being introduced, with tracker rates starting at 1.74%. Selected tracker rates will increase by up to 0.15%.