New two-year fix unveiled - buy to let mortgages

16 January 2009

The Mortgage Works, which is the specialist lending arm of Nationwide, has unveiled a new two-year buy to let product.

It also announced that it is lowering rates on its five-year fixed buy to let mortgages.

Customers can now obtain the two-year fix at an initial pay rate of 4.69 per cent, which is available with a loan-to-value (LTV) of up to 60 per cent.

The revamped five-year fix is offered at an initial rate of 5.68 per cent, plus an 'easy remortgage' deal for the same period of time has been discounted to 5.78 per cent.

In addition, the lender's tracker products have been reduced in line with the recent Bank of England base rate cut.

Managing director Andy McQueen said: "The availability of a one-year tracker-rate buy to let product at 3.49 per cent is evidence that some borrowers could benefit from variable-rate deals in the current environment."

However, Legal & General has noted that many buy to let investors are still opting for fixed deals.