In a significant move for the property investment sector, The Mortgage Works (TMW), the buy-to-let mortgage lending arm of Nationwide Building Society, has implemented its second round of rate reductions within just seven days. This latest announcement follows closely on the heels of similar cuts made last Saturday, demonstrating a clear trend of improving conditions for landlords across the UK.
Substantial Rate Reductions Announced
The lender has confirmed that effective from Saturday 24 January, it will be reducing rates by as much as 0.2 percentage points across selected fixed-rate products within its new business mortgage range. These reductions apply to one-year, two-year, and five-year fixed rate options, providing landlords with multiple competitive choices for their investment properties.
New Rate Structure Details
The most notable change sees TMW's lowest available buy-to-let rate now standing at what industry observers are calling an "impressive" 2.29 per cent. This particular offer comes with a 2 per cent product fee attached and is available for both purchase and remortgage transactions up to 75 per cent loan-to-value (LTV).
Additional rate adjustments include:
- A two-year fixed rate for purchase and remortgage at 2.49 per cent, reduced by 0.1 per cent, featuring a 3 per cent fee and available up to 65 per cent LTV
- A five-year fixed rate remortgage option at 3.57 per cent, reduced by 0.1 per cent, with a 3 per cent fee, available up to 75 per cent LTV and including free valuation and legal services
Industry Response and Market Implications
Keir Fraser, Lead Manager at TMW, commented on the strategic decision, stating: "This second round of rate cuts further demonstrates our commitment to supporting landlords with products that put The Mortgage Works at the forefront of the buy-to-let market."
Mortgage industry professionals have welcomed the news with enthusiasm. Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, noted: "Good to see landlords are not being ignored, given the improvements seen in the market, especially for those buying or refinancing buy-to-lets in their personal names. With rates in the 2 per cent range, there are some tremendous options, but you do need to consider the product fees and overall pricing strategy."
Potential Turning Point for Property Investment
Omer Mehmet, Managing Director at Trinity Finance, suggested this development could represent a watershed moment for the buy-to-let sector. He explained: "Seeing TMW cut buy-to-let rates twice in one week is a strong signal of renewed confidence in the landlord market. Rates back in the low-2 per cent range would have seemed unthinkable not long ago, and they materially improve the maths for both new purchases and remortgages."
Mehmet continued with an optimistic outlook: "If this momentum continues, 2026 could mark a genuine turning point where buy-to-let becomes investable again for the right clients. This represents a significant shift from the challenging conditions landlords have faced in recent years."
The consecutive rate reductions within such a short timeframe suggest lenders are actively responding to improving market conditions and increased competition. For existing landlords considering remortgaging or new investors entering the market, these developments provide substantially improved financial calculations and potentially enhanced returns on property investments.
