New hopes of a mortgage price war have been triggered with the launch of a new deal at under 4 percent.
The Mortgage Works have just announced rate cuts across their buy to let range, including a 3.99 percent fixed rate for 5 years option.
The highlights from these improved rates also include a 4.99 percent fixed rate for limited companies for 2 years.
Some industry experts believe that these rate cuts could lead other providers to dropping their rates to keep up.
Darryl Dhoffer, adviser at The Mortgage Expert, told Newspage: “Buy-to-let mortgages have been dropping for some time now. Who would have thought that a headline buy-to-let rate of 3.99 percent would be cheaper than a standard residential mortgage rate? Fair play to The Mortgage Works. Let’s hope big brother, Nationwide, wake up and start reducing residential interest rates.”
Gary Bush, financial adviser at MortgageShop.com, said: “It’s great to see the return of fixed rates with a 3 at the beginning of them. Watch this space as more cuts from other lenders are almost baked in.”
Many industry professionals have commended the move as it relieves pressure on landlords and tenants alike.
Charles Breen, founder of Montgomery Financial, told Newspage: “Hopefully other major buy-to-let lenders will follow in reducing their own rates. As one of the biggest lenders in the buy-to-let space, this is an encouraging sign for borrowers.”
Some industry experts also believe that this is evidence of lenders reacting to last week’s Bank of England minutes and the lower than expected inflation data.
Justin Moy, managing director at EHF Mortgages, told newspage: “Great to see one of the larger mortgage lenders react to the Bank of England’s mood of optimism, which has lowered swap rates over the past few days.
“A sub-4 percent BTL for the landlords will definitely catch the investor’s eye. Let’s hope similar residential rate cuts are just around the corner.
Some experts believe that these rate cuts came at just the right time.
Ying Tan, chief executive of Habito, said: “This is a great statement of intent and a decisive move by The Mortgage Works.
“A sub-4 percent rate is an important psychological barrier to overcome, and no doubt others will follow suit. This will bring joy to landlords across the country. The Easter bunny has finally arrived.
Robert Timm, managing director at Sunland Mortgages, said: “In the week where we have Good Friday, it’s proving to be a very good Monday as another major lender chops rates. Whisper it only but things are starting to look up.”
