Buy to let mortgage lenders have started slashing mortgage rates in the wake of the Brexit vote.

Several lenders – including one of the market leaders – have confirmed cheaper mortgages for landlords already and more cut price deals are expected to follow as competition hots up.

The Mortgage Works, the buy to let arm of The Nationwide Building Society, was first out of the blocks with rate reductions.

From Friday, June 24, interest rates dropped on all two-year mortgages, while all three-year plus mortgages saw their rates increase by 0.65%

A 65% loan to value buy to let mortgage starts at 2.19%, while a 75% LTV deal starts from 2.5%.

Trackers start at 1.94% at 65% LTV and 1.94% for 75% LTV.

Mortgage Works managing director Paul Wootton said: “TMW is increasing the competitiveness of its mortgage rates for two-year, three-year and five-year terms, helping to support landlords maintain a positive cash flow and help to manage their costs as the tax relief changes are phased in.”

Dudley Building Society and Precise Mortgages have also cut their buy to let mortgage rates.

Jonathan Moore, head of credit at Dudley, said:

“We have introduced a strong line up of products for the buy to let market that reflects our commitment to the sector.

“Landlords can choose between discounted rate products where the discount from the standard variable rate lasts for the term of the mortgage or three or five year fixed rate options.”

Alan Cleary, managing director at Precise Mortgages explained cheaper borrowing costs for banks and building societies meant cheaper mortgages.

“Swaps are pricing in another expected decrease in the Bank of England Base Rate. We could easily see a drop of 25 basis points in the next two weeks,” he said.