TMW launches new buy-to-let rates with increased stress rate

On Friday 30th September, TMW reintroduced five and ten-year buy-to-let rates after temporarily withdrawing its range on Wednesday 28th.

A one-year fixed rate is now available at 4.64% up to 75% LTV with a 2% fee, a two-year fix starts at 5.04% up to 65% LTV with a 3% fee, and a five-year fix launches at 5.14% up to 65% LTV with a 3% fee.

The products are available for purchase and remortgage with other rate/fee combinations also available.

In addition, the minimum stress rate for TMW buy-to-let mortgages will increase to 8.49%. TMW says the rise is due to "significant changes in buy-to-let interest rates and the wider economy" and that the change is "an interim measure to better protect landlord cashflows during a period of interest rate turbulence".

The lender added that its affordability model remains under review and intends to launch a more tailored approach to stress rates in due course.

Daniel Clinton, head of The Mortgage Works, said: “These new buy-to-let mortgages offer our most competitive rates to landlords who want to fix their repayments and manage their cashflow.

“As a responsible lender it is important we respond to recent events, ensuring our affordability model reflects the latest interest rate environment and helps safeguard the ability for our landlords to afford their mortgage both now and in the future.”