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Recent BTL offerings are still as dynamic as the changing market – Armstrong

by: Cat Armstrong, mortgage club director, Dynamo for Intermediaries
  • 29/04/2022
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Recent BTL offerings are still as dynamic as the changing market – Armstrong
The buy-to-let sector (BTL) continues to experience many changes when it comes to pricing, policy and criteria in line with ever-changing economic and market demographics.


This makes for a highly dynamic lending environment which is generating its fair share of opportunities and challenges for a range of landlords.

From a pure product perspective, let’s start this month’s round-up with some new entrants into some interesting areas of the BTL marketplace.

First up, CHL Mortgages entered the short-term let marketplace with the launch of a five-year fixed rate product range, up to 75 per cent loan to value (LTV).

This follows the recent introduction of a new product range by the lender for large Houses in Multiple Occupation (HMO) and multi-unit freehold blocks (MUFB), designed to cater for properties with seven to 10 bedroom or units.

Mansfield Building Society added lending to limited companies and expats to its holiday let offer. In addition to expanding its holiday let borrower types, Mansfield also increased the maximum LTV from 70 per cent to 75 per cent for holiday lets and its maximum loan size to £1mn for BTL.

The new holiday let mortgages, available to both individual landlords and Special Purpose Vehicle (SPV) limited companies, include a two-year discounted rate at 3.59 per cent variable and five-year fixed rate at 4.09 per cent.

Expats needing a holiday let mortgage will also be able to access a two-year discount at 4.19 per cent variable and a five-year fixed rate at 4.69 per cent.

West One Loans became the first lender to introduce a green second charge mortgage for landlords available on properties with an EPC rating between A to C.

The new green product is set at the lender’s lowest ever rate for BTL second mortgages starting from 5.29 per cent. In addition, the lender has created a new, second charge BTL plan called BTL Plus with rates starting at 5.39 per cent.

Fleet Mortgages launched seven-year fixed rates in all three of its core BTL ranges, which are standard, limited company and Limited Liability Partnership, and HMO/MUFB.

Advisers now have access to the new 75 per cent LTV products, available for purchase and remortgage, with standard and limited company/LLP options priced at 3.29 per cent, and HMO/MUFB priced at 3.59 per cent.

The products are available with a minimum loan of £25,001 up to £1mn and come with a rental calculation of 125 per cent at 3.29 per cent for standard and limited company and 125 per cent at 3.59 per cent for HMOs.


Product changes

In terms of product changes, Accord Mortgages modified its BTL mortgage offering. The new range includes rate cuts on selected two-year products at 65 per cent LTV of up to 0.09 percentage points.

This includes a two-year fixed rate at 2.51 per cent, it was previously 2.6 per cent, available for remortgaging, which comes with a £495 fee, free remortgage legal service and free standard valuation.

The intermediary-only lender also reduced rates on selected products at 75 per cent LTV for landlords looking for two-year and five-year terms.

These include a five-year fix at 2.49 per cent, formerly 2.55 per cent, available for both house purchase and remortgage. It comes with a £1,995 fee, £250 cashback and free standard valuation.

Market Financial Solutions cut rates across both its BTL mortgage range and bridging loan products. The specialist lender’s BTL mortgage rates now start from 3.29 per cent, down from 3.79 per cent.

Finally, Clydesdale Bank has updated its BTL mortgage range with selected BTL 60 per cent LTV rates increasing by 0.15 percentage points.

This offers a good flavour of the breadth of activity on show across a BTL market which continues to demonstrate its flexible yet complex nature.

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