New 10-year fixed rate for landlords launched
The specialist buy-to-let arm of Nationwide Building Society, The Mortgage Works, has launched a new 10-year fixed rate mortgage range for landlords.
For those looking for a decade of fixed mortgage repayments, the new 10-year fixed rate range starts at 2.74% at up to 65% of the property’s value with a £1,995 fee, free standard valuation and £250 cashback. The mortgage applies Early Repayment Charges (ERCs) for the full 10 years.
In addition, there is the option of a 10-year fixed rate product that is ERC-free after five years, with a higher rate of 3.24%.
The lender also announced it is cutting stress rates for longer-term fixed rates and like-for-like remortgage products, making it easier for some landlords to get the mortgage they need.
The stress rate is higher than the actual interest rate of the mortgage you choose, but the lender needs to ensure you can afford the higher rate, to give you a buffer against potential rising interest rates or other problems.
The stress rate for the five-year fixed rate products up to 75% of the property’s value is being reduced from 4.99% to 4.50%, while the 10-year fixed rate mortgage at up to 65% loan-to-value is reduced to 4.00%, or pay rate plus 0.75%, whichever is higher.
Like-for-like remortgages with 25% equity will see their stress rate reduced from 5.50% to 4.99%.
Paul Wootton, managing director of TMW, said: “The new 10-year fixed rate products offer competitive rates and a choice of ERCs to widen choice and increase flexibility for landlords, who are looking to manage their cashflow while maintaining long-term payment security.
“Along with recent improvements to our product proposition, this further illustrates TMW’s continued commitment to supporting landlords.”