Nationwide’s subsidiary, The Mortgage Works, has revealed plans to reduce switcher rates for some UK households, offering a significant financial advantage to those with buy-to-let mortgages. This decision is part of the building society’s ongoing commitment to supporting homeowners, landlords, and renters amid the challenging economic environment.
As of Thursday, 17th July, customers of The Mortgage Works will see reductions of up to 0.30 percentage points across selected buy-to-let products. The new rates, which cover a range of fixed-rate mortgage options, are designed to ease the financial strain on borrowers, especially in a period of rising interest rates and market uncertainty.
Key Reductions Across Buy-To-Let Products
The Mortgage Works has outlined a range of new rates, which include competitive offers across both two-year and five-year fixed products.
For instance, a two-year fixed rate at 2.78% with a 3% fee is now available up to 65% Loan-to-Value (LTV), reflecting a 0.21% reduction. This will likely be a welcome relief for existing customers seeking more affordable terms.
Additionally, a two-year fixed rate at 3.99%, with a £1,495 fee and also available up to 65% LTV, sees a reduction of 0.13%. These cuts are aimed at providing flexibility for buy-to-let landlords looking to lower their borrowing costs.
A further reduction can be found in a two-year fixed-rate product at 4.54% with no product fee, which is available up to 65% LTV, down by 0.06%.
The range also includes a variety of limited company mortgage rates, which offer reduced terms to assist professional landlords. For example, a two-year fixed rate of 4.04% with a 3% product fee and available up to 75% LTV has seen a 0.10% reduction.
Nationwide’s Long-Term Commitment to Landlords
Joe Avarne, Senior Manager at The Mortgage Works, commented that these reductions highlight the company’s “ongoing commitment to supporting our landlords.” The building society, which is the largest in the world, is keen to help alleviate the pressures faced by property investors while also enhancing its reputation as a customer-focused institution.
With a market presence that reaches one in three people in the UK, Nationwide has long been regarded as a key player in the financial services sector. It is the second-largest provider of mortgages in the UK and aims to offer “fairer, more rewarding” banking, as outlined in its corporate mission.
Nationwide’s pledge to donate 1% of its annual profits to good causes underscores its focus on social responsibility. The new rate cuts are seen as a direct response to growing demands from borrowers seeking better terms and flexibility in light of the broader economic context.
