Nationwide's subsidiary, The Mortgage Works, has announced significant updates to its mortgage offerings, cutting rates on selected two and five-year fixed rate products while introducing a new cashback scheme aimed at limited company landlords. Effective from April 17, 2025, this initiative is expected to benefit many customers who are looking to remortgage.
The Mortgage Works, known for its buy-to-let mortgage products, will implement reductions of up to 0.25% on limited company buy-to-let products, while buy-to-let and let-to-buy products will see cuts of up to 0.20%. These changes aim to enhance the competitiveness of The Mortgage Works in the current mortgage market.
Among the new offerings, a buy-to-let two-year fixed rate mortgage (available for both purchase and remortgage) will be set at 3.14% with a 3% fee, applicable for loans up to 65% loan-to-value (LTV). This represents a reduction of 0.10% from previous rates. In addition, a buy-to-let five-year fixed rate mortgage will be available at 4.34% with a £1,495 fee, also available up to 75% LTV, reflecting a similar 0.10% decrease.
For limited company landlords, The Mortgage Works is rolling out a new range of five-year fixed rate buy-to-let products designed specifically for remortgaging. Each of these products will come with a free valuation and a £750 cashback incentive. The cashback mortgage offerings include a five-year fixed rate remortgage option at 4.99% with a 3% fee, a 5.29% option with a £3,995 fee, and a no-fee option at 5.69%, all available for loans up to 75% LTV.
Joe Avarne, Senior Manager at The Mortgage Works, expressed optimism about the changes, stating, "These latest rate cuts across our mortgage range should come as great news for landlords and will position The Mortgage Works as one of the most competitive lenders in the market. The introduction of our limited company cashback range also shows how we continue to innovate and enhance our product range to ensure we meet the needs of landlords. We know that the £750 cashback will be a welcome benefit for customers remortgaging to The Mortgage Works." His comments underscore the potential impact of these new products on the landlord community.
Nationwide's broader strategy appears to be focused on maintaining a competitive edge in the mortgage lending market. Last November, the organization reported a substantial gain of £2.3 billion following its acquisition of rival bank Virgin Money. However, it also indicated a drop in profits, attributed to diminishing benefits from rising interest rates and ongoing payouts to members.
Chief Executive Debbie Crosbie commented on the current economic climate, stating, "The economic outlook remains uncertain, and the interest rate outlook means we expect to have passed peak profitability. However, lower interest rates and resilience in real earnings are supporting consumer finances which, if maintained, should support a strengthening in housing market activity and overall deposit growth." This perspective highlights the challenges and opportunities facing lenders in a fluctuating economic environment.
As the mortgage landscape continues to evolve, Nationwide and The Mortgage Works are positioning themselves to better serve landlords and investors. The recent rate cuts and cashback offers reflect a strategic response to market demands, aiming to attract more customers during a time of uncertainty in the housing market.
The Mortgage Works' new cashback mortgage range for limited companies is a notable development, particularly as it comes amidst a backdrop of changing interest rates and housing market dynamics. By offering financial incentives like cashback and reduced rates, the organization is not only enhancing its product offerings but also reinforcing its commitment to supporting landlords in navigating the complexities of the mortgage market.
In conclusion, these changes from The Mortgage Works signify a proactive approach to meet the needs of landlords, providing them with more competitive options and financial incentives as they consider their mortgage choices. As the housing market continues to face challenges, initiatives like these may play a crucial role in sustaining activity and growth within the sector.
