New offerings from Metro Bank, Atom bank, West One and Pepper Money address demand across BTL, residential, and near prime segments
Four specialist lenders — Metro Bank, Atom bank, West One Loans, and Pepper Money — have launched or updated mortgage products in response to shifting borrower demand, with a focus on buy-to-let, high loan-to-value (LTV) and near prime segments.
Metro Bank has added houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFB) to its buy-to-let range, including options for limited company borrowers. The new products share the same core criteria as its existing buy-to-let range, offering a consistent approach for brokers.
Features include maximum LTVs of 75% (or 70% for loans over £1 million), allowance for up to six tenants or units, and acceptance of student lets and tenants on benefits.
“HMO properties have become essential within the property ecosystem for renters and landlords alike,” said Charles Morley (pictured far right), head of mortgage distribution at Metro Bank. “As an award-winning specialist lender, we understand how important consistency and simplicity is to brokers and landlords.”
In a similar move, Atom bank has launched a new set of Near Prime mortgage products with a £1,500 arrangement fee. Available for both purchase and remortgage, the new fixed-rate deals come in two-, three-, and five-year terms at 75%, 85%, and 90% LTV. Rates start from 5.09% for two-year fixes and 5.24% for three- and five-year fixes.
The lender said the new products complement its existing Near Prime options, which include lower or no arrangement fees. Atom has cut rates multiple times this year, including twice in June, in an effort to improve affordability for Near Prime borrowers.
A key feature of Atom’s approach is the automatic move to Prime rates at maturity for borrowers who have improved their credit. Over the past 12 months, 70% of Atom’s Near Prime customers have qualified for Prime products at maturity.
“This new range of products are sure to be welcomed by brokers and their Near Prime clients,” said Richard Harrison (pictured far left), head of mortgages at Atom bank. “The higher arrangement fee opens up lower interest rate options for customers, particularly those borrowing higher loan amounts.”
Meanwhile, West One Loans has introduced new products and rate reductions across its second charge, buy-to-let (BTL), and residential mortgage ranges.
The lender is now offering up to 97.5% LTV on second charge and residential mortgages, without the use of credit scoring. It has also introduced income multiples up to 6.5 times as standard, with automated valuation models (AVMs) now available up to 85% LTV.
Remortgage customers will be eligible for the high-LTV range, with capital raising allowed for most legal purposes.
Across its residential range, West One has reduced rates by up to 30 basis points (bps), with fixed rates now starting from 5.39% for core products. Reductions also apply to the LTI Boost Range, shared ownership, and Right to Buy products.
In the BTL segment, West One launched a limited edition range with fixed rates from 2.99% and reductions up to 15bps. Maximum portfolio sizes have increased to £12 million, with AVMs available up to 70% LTV. These are open to individuals, limited companies, portfolio, and first-time landlords.
“These changes demonstrate our commitment to developing a compelling range of specialist lending products designed to meet the wide-ranging needs of residential mortgage customers, second charge borrowers and landlords,” said Marie Grundy (pictured second from left), managing director of mortgages at West One.
Elsewhere, Pepper Money has expanded its residential mortgage range, adding a 90% LTV option to its Pepper48 and Pepper36 products. The new offering includes five-year fixed rates starting at 6.39%.
The move responds to growing demand from borrowers facing affordability challenges as house prices remain high relative to earnings. The lender pointed to the 2024 house price-to-income ratio of 7.25 as a key market pressure.
Pepper’s 90% LTV loans are available to customers with no defaults or county court judgements (CCJs) in the past three years. Borrowers can access the full LTV with no debt-to-income restrictions.
“There is no denying that house prices have skyrocketed in relation to earnings and this means deposits are rising too, putting more stress on already stretched households looking to purchase a home,” said Paul Adams (pictured second from right), sales director at Pepper Money.
The lender said the changes are aimed at supporting self-employed borrowers and those with non-traditional credit histories who may not qualify for high street lending.
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