New product updates offer brokers greater flexibility amid affordability pressures
Several UK lenders have announced reductions to fixed mortgage rates and expanded offerings in a bid to attract landlords and support brokers navigating affordability pressures in the buy-to-let sector.
Coventry for intermediaries has lowered selected fixed rates across its residential, BTL, and newly launched limited company BTL products. Notable options include a 3.96% two-year fixed rate at 65% loan-to-value (LTV) for residential purchases, and a 4.29% five-year fixed rate at 65% LTV for BTL remortgages, which includes a £1,999 fee and the option for £350 cashback or use of its Remortgage Transfer Service.
“We’re starting to see more rates dip below 4%, which is a positive sign for homebuyers and a welcome shift for brokers supporting them,” said Jonathan Stinton (pictured far left), head of intermediary relationships at Coventry. “In line with favourable swap moves, we’ve reduced rates to help brokers offer competitive options in a gradually improving market.”
Suffolk Building Society also made reductions to its BTL and holiday let mortgage rates, cutting up to 11 basis points (bps) on several 80% LTV two-year fixed products, now extended until August 31, 2027. These include cuts to expat, light refurb, and standard BTL products.
“By lowering rates, we can help landlords improve their borrowing ability, without having to take a five-year fixed rate,” said Charlotte Grimshaw (pictured second from left), head of intermediary relations and mortgage sales at Suffolk Building Society.
Meanwhile, buy-to-let lender Landbay introduced 0.25% rate reductions across its non-portfolio and standard five-year fixed ranges. Non-portfolio options, designed for landlords with three or fewer mortgaged properties, now start at 4.09% up to 75% LTV. Standard five-year fixed rates at 55% LTV start at 4.19%.
“Our recent data has demonstrated the appetite that still exists among landlords to invest in property,” said Rob Stanton (pictured centre), sales and distribution director at Landbay. “It’s great to be able to bring reductions to our non-portfolio range, which remains hugely popular.”
Another buy-to-let specialist, Fleet Mortgages, has cut rates by 15bps on its five-year house in multiple occupation (HMO) and multi-unit block (MUFB) products at 75% LTV, with fixed-fee and zero-fee options now priced at 5.54% and 5.74%, respectively. The lender also introduced a £1,000 cashback incentive across its two- and five-year HMO/MUFB fixes, with the possibility of up to £2,000 cashback for landlords improving their property’s EPC rating to C or above.
“Upfront costs for landlord borrowers continue to rise,” said Steve Cox (pictured second from right), chief commercial officer at Fleet Mortgages. “The addition of £1,000 cashback will certainly ease this financial burden.”
Specialist lender ModaMortgages is expanding its buy-to-let offering with the addition of 80% LTV fee-free options across core and limited edition two- and five-year products. The lender also reduced selected limited edition rates by up to 10bps, with two-year fixes starting from 3.44% and five-year fixes from 4.84%.
“The new option, combined with our recent launch of expanded fees, will give brokers even more choice,” said Darrell Walker (pictured far right), group sales director at ModaMortgages.
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