New buy-to-let mortgage launched by Nationwide

Nationwide’s specialist lending arm, The Mortgage Works, has launched two buy-to-let products, including a one-year fixed rate home loan.

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The fixed-rate mortgage offers a rate of 3.49% for one year, with the rate reverting to bank base rate plus 2.99% after twelve months. Alternatively borrowers can chose the tracker rate of base rate plus 1.99% for the first year, which also then reverts to base rate plus 2.99%.
Both options carry a 3.5% fee, the minimum stands at £595 – which would be paid on a loan of just £17,000.

Early repayment charges apply for the first year on both products: for the fixed-rate mortgage the charge is 5% until March 2010 and 3% for the tracker rate.
Andy McQueen, managing director of The Mortgage Works, said: ‘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.
‘With early repayment charges only applicable for the first year, customers can benefit from competitive interest rates for a year and then reassess their mortgage needs.’

If landlords are interested in these buy-to-let mortgage products then I'd recommend that they should try and access them through moneybackmortgages who will pay them half the commission they receive from these products. This can work out at several hundreds of pounds as the latest commission rates paid by The Mortgage Works to an introducer is 0.45% of the advance.