TMW launches two buy-to-let products for the New Year

The Mortgage Works, the specialist lending arm of Nationwide, has announced that it has launched two new mortgages for the buy-to-let market.

One is a tracker mortgage which follows the bank base rate (BBR) plus 1.99% for a year, after which it follows the BBS plus 2.99%. The other is a fixed rate mortgage with a rate of 3.49% for a year, after which it too reverts to the base rate plus 2.99%.

The mortgages carry a 3.5% fee and early repayment charges apply for the first year. After this initial period, borrowers can re-assess their mortgage needs if the so wish, says Managing Director of the Mortgage Works, Andy McQueen. Repayment charges are 5% for the fixed rate product and 3% for the tracker mortgage. These charges apply until March 2010.

Andy McQueen says, "these two new products will cater for both customers who are seeking to fix their payments over the next year, and those who are comfortable with their payments tracking the bank base rate.” In this way they are ideal for buy-to-let investors but are not available to limited companies.