The Mortgage Works (TMW) is lowering selected buy-to-let and limited company buy-to-let mortgage rates from Friday 1 August, offering landlords some relief after months of high borrowing costs. The lender is cutting fixed rates by up to 0.25% across its range, potentially reducing monthly repayments for landlords remortgaging or expanding portfolios.
Limited company landlords benefit most from rate changes
In a move likely to attract portfolio landlords using SPV structures, TMW has reduced limited company buy-to-let products by up to 0.25%. The standout deal includes a two-year fix at 5.09% with a £1,495 fee—down 0.25%—available up to 75% LTV and including a free valuation.
Another limited company option now offers 3.99% with a 3% fee, also up to 75% LTV, aimed at those looking for maximum leverage with minimal upfront costs. Meanwhile, the no-fee version has also been trimmed—now 5.59%, down from 5.79%.
These changes come as landlords continue to favour limited company structures for tax efficiency, especially following restrictions to mortgage interest relief on personal buy-to-let borrowing. According to the NRLA, over 50% of new landlord purchases in 2024 were made through limited companies—up from just 15% in 2016.
Joe Avarne, Senior Manager at TMW, commented: “We are pleased to announce further rate cuts across our mortgage range, which should come as great news for landlords. They really demonstrate that TMW remains committed to supporting all types of landlords with competitive rates.”
Cuts to standard buy-to-let rates still modest
The reductions extend to traditional buy-to-let mortgage and let-to-buy remortgage deals too, though the changes here are more muted. The two-year fixed at 4.09% with a £1,495 fee—available up to 75% LTV—has been cut by 0.15%, while a 65% LTV version stands at 4.04%, down just 0.05%.
Five-year options remain pricier, with the fee-free 75% LTV remortgage now offered at 4.44%, reduced by 0.05%. That’s still significantly higher than pre-2022 levels, when sub-3% deals were common for five-year fixes.
However, landlords may welcome any downward movement, however small. “It’s been brutal out there,” said Anthony Webb, a landlord in Kent with five HMOs. “I refinanced at over 6% last autumn. These cuts may not seem huge, but if this is the start of a wider trend, it’s a lifeline.”
UK Finance data shows that remortgaging accounts for more than 60% of current buy-to-let mortgage activity, as thousands of landlords grapple with refinancing pressures after low-rate deals expired during the Bank of England’s rate-hike cycle.
Are rates heading down—or just finding a new normal?
While TMW isn’t the only lender adjusting its pricing, its position as one of the UK’s largest specialist buy-to-let lenders makes this move especially meaningful. Landlords will be watching closely to see whether other lenders follow suit—and whether rate reductions begin to accelerate into the autumn.
This comes as swap rates—the key driver of fixed mortgage pricing—have started to soften slightly, with some analysts now forecasting a Bank of England base rate cut by early 2026. That said, lenders remain cautious, especially with inflation figures still fluctuating and wider uncertainty over future housing policy.
The NRLA has previously urged mortgage lenders to show greater flexibility in light of increasing costs, warning that many landlords are being squeezed between rising mortgage repayments and rent caps. The association has also highlighted that without meaningful lender support, more landlords may be forced to exit the sector—placing further pressure on rental supply.
