New offerings support brokers with domestic landlord and overseas investor clients
Three lenders have rolled out new or expanded buy-to-let mortgage products, targeting a range of landlords from domestic property investors to high-net-worth expats.
Pepper Money has returned to the buy-to-let market with a new product suite aimed at increasing accessibility for landlords. The lender now offers mortgages to both individual landlords and limited companies with up to 10 properties, with rates starting from 4.99% and borrowing available up to £4 million.
Maximum loan sizes have been increased to £2 million at up to 65% loan-to-value (LTV). The lender has removed several traditional lending barriers, including requirements for minimum income, bank statements, or credit scores. Instead, affordability is assessed based on potential rental income as determined by a RICS surveyor.
LTV allowances are linked to a property’s energy performance certificate (EPC) rating, with up to 80% LTV available for properties rated ‘A’ to ‘C’. This comes as landlords prepare for the UK government’s proposed 2030 deadline requiring rental properties to have a minimum EPC rating of ‘C’.
“We’re re-entering the buy-to-let market with a new product offering designed to maximise choice and convenience for residential landlords in the UK,” said Paul Adams (pictured left), sales director at Pepper Money.
Another lender, Investec Bank, has introduced a tailored buy-to-let proposition for high-net-worth UK expats residing in Dubai and Switzerland. The lender is targeting the underserved segment with bespoke solutions and access to UK and Channel Islands properties.
Minimum loans start at £1 million, and clients will receive support from dedicated private bankers. The product is available through brokers or directly via Investec’s offices in London and the Channel Islands.
“We are pleased to launch our bespoke buy-to-let proposition for expatriates,” said Peter Izard (pictured centre), head of intermediary business development at Investec Bank. “Our approach is tailored to address the unique challenges faced by expats who are looking to purchase their first buy-to-let property or are seeking to expand their UK and Channel Islands property portfolio while out of the country.”
Meanwhile, Paragon Bank has extended its 80% LTV buy-to-let range to include product switches and further advances. The lender had previously launched purchase and remortgage products at this LTV tier in April.
The new products include two- and five-year fixed-rate options, with rates starting at 6.24%. They apply to single self-contained units, houses in multiple occupation, and multi-unit blocks. Free valuations and no application fees are included.
“We want to ensure that our existing customers also benefit from the flexibility that 80% LTV products offer, so we are pleased to expand our range to both product switches and further advances,” said Russell Anderson (pictured right), commercial director of mortgages at Paragon Bank.
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