TL;DR
The Mortgage Works (TMW), Nationwide's buy-to-let lending arm, is reducing switcher rates for existing customers by up to 0.25 percentage points effective from 27 June 2026. The cuts apply to selected buy-to-let and limited company buy-to-let products. This is TMW's third set of rate reductions in one month. Existing customers approaching the end of their current deal can switch to the new rates without early repayment charges on eligible products.
Last reviewed: 27 June 2026
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Key Facts Effective date: 27 June 2026 Max reduction: 0.25 percentage points 5yr fix BTL: 4.44% (65% LTV, £1,495 fee) 2yr fix BTL: 4.89% (65% LTV, no fee) Ltd co BTL 2yr: 5.74% (75% LTV, no fee) |
What rates have changed
The Mortgage Works announced on 26 June 2026 that the following switcher rates for existing customers take effect from Saturday 27 June 2026:
The five-year fixed rate buy-to-let switcher product moves to 4.44 percent, with a £1,495 fee, available up to 65 percent LTV. This represents a reduction of 0.15 percentage points. The two-year fixed rate buy-to-let switcher product with no fee moves to 4.89 percent, available up to 65 percent LTV, reduced by 0.10 percentage points. The two-year fixed rate limited company buy-to-let switcher product with no fee moves to 5.74 percent, available up to 75 percent LTV, reduced by 0.20 percentage points.
Full details of all rate changes are available on The Mortgage Works product pages. Rates are only secured once a full application and any applicable fee has been received.
Third rate cut in a month from TMW
The 27 June reductions are the third set of rate cuts The Mortgage Works has made in the space of a month. On 5 June 2026, TMW cut rates by up to 0.22 percentage points across selected one, two and five-year fixed rate products for new and existing customers across buy-to-let, let-to-buy, HMO and limited company buy-to-let ranges. On 17 June 2026, further cuts of up to 0.26 percentage points were applied across selected two, three and five-year fixed rate products.
The pattern of repeated cuts reflects broader downward pressure on buy-to-let mortgage rates as swap rates have eased and lenders compete for remortgage and product transfer business. For existing TMW customers, the cumulative effect of three rounds of cuts means materially lower rates are available compared to one month ago.
Who these cuts apply to
The 27 June rate changes apply to existing TMW customers switching products at the end of their current deal -- not to new BTL purchase or remortgage applications from new customers, which are governed by separate product ranges. Existing customers can switch to the new rates without early repayment charges on eligible products using TMW's Switch to Fix facility, which allows customers on tracker products to switch to a fixed rate within the same product range without incurring ERCs.
The maximum loan amount is £2,000,000. Customers can make lump sum or regular overpayments of up to 10 percent of the initial mortgage balance in each twelve-month period from the anniversary of completion without paying ERCs. Dan Clinton, Head of Buy-to-Let at The Mortgage Works, said the reductions underline the lender's ongoing commitment to supporting existing landlord customers approaching the end of their current deal.
What this means for BTL landlords
Buy-to-let landlords whose current TMW product is due to expire should log in to their account and review the current switcher product range before their existing deal ends. Switching early -- before the current product expires -- locks in the new rate and avoids rolling onto the lender's standard variable rate, which is typically significantly higher than fixed product rates. TMW allows customers to apply for a product switch up to six months before the end of their current deal.
Landlords operating through a limited company structure should note that the limited company buy-to-let switcher rates are also included in the reductions. The two-year fixed limited company product at 5.74 percent with no fee at 75 percent LTV represents a reduction of 0.20 percentage points and is among the more competitive limited company switcher rates available from a mainstream BTL lender.
Context: BTL mortgage rates in June 2026
Buy-to-let mortgage rates have been declining through 2026 as Bank of England base rate expectations have shifted. The BoE base rate stands at 4.25 percent as of June 2026, having been reduced from 5.25 percent in a series of cuts since August 2024. TMW's five-year fixed switcher rate at 4.44 percent represents a significant narrowing of the premium over the base rate compared to the peak BTL rate environment of 2023, when five-year BTL fixes were widely above 6 percent.
The limited company BTL market has grown materially since the Section 24 mortgage interest restriction phased in from 2017, reducing the tax efficiency of personally held BTL mortgages. Limited company BTL allows landlords to deduct mortgage interest in full as a business expense. TMW has offered limited company BTL since 2018 and the 27 June cuts include rates for both individual and limited company customers.
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Disclaimer This article is for information only and does not constitute financial advice. Mortgage rates change frequently. Always verify current rates directly with The Mortgage Works or an FCA-authorised broker before making a product switch decision. Kael Tripton Ltd is an independent editorial publisher and is not regulated by the FCA. |
Frequently asked questions
Who can access The Mortgage Works switcher rates?
The switcher rates announced on 27 June 2026 are available to existing TMW customers who are switching products at the end of their current deal. They are not available to new customers applying for a first-time BTL purchase or a remortgage from another lender. Existing customers can log in to their TMW account or contact their broker to initiate a product switch.
Is there an early repayment charge on TMW switcher products?
Product switches at the end of a current deal do not incur early repayment charges. If a customer is still within their current fixed or tracker term, ERCs may apply. TMW's Switch to Fix facility allows customers on eligible tracker products to switch to a fixed rate within the same product range without ERCs. Check your current mortgage terms or contact TMW directly to confirm whether ERCs apply to your specific situation.
What is the maximum loan available on these switcher rates?
The maximum loan amount on TMW products is £2,000,000 unless otherwise stated. The 65 percent LTV products require the outstanding mortgage balance to represent no more than 65 percent of the current property value. The 75 percent LTV limited company products allow a higher loan-to-value. Rates are only secured once a full application and any applicable fee has been received.
How do I switch my TMW buy-to-let mortgage?
Existing TMW customers can apply for a product switch up to six months before their current deal expires. Log in to your TMW account online or contact TMW directly. If your mortgage is managed through a broker, your broker can initiate the switch on your behalf. There is no full underwriting or affordability assessment for a product transfer on a like-for-like basis.
How does Section 24 affect the choice between individual and limited company BTL?
Section 24 of the Finance (No. 2) Act 2015 restricts the mortgage interest deduction for individual BTL landlords, replacing it with a 20 percent tax credit. This means higher and additional rate taxpayers pay more tax on rental profits. Limited company BTL is not subject to Section 24 -- the company can deduct mortgage interest in full as a business expense, making limited company structures more tax-efficient for higher-rate taxpayers with significant BTL portfolios. Always take independent tax advice before choosing between individual and limited company structures.
