Competition in the BTL market has given rise to new lending opportunities – Armstrong

Lower swap rates and increased lender competition have continued to put downward pressure on mortgage pricing, giving landlords and investors more options as they review borrowing strategies. While economic uncertainty has not disappeared and regulatory reforms remain firmly on the agenda, lenders are demonstrating confidence through a range of new products, rate reductions and enhancements.

With that in mind, here’s a summary of some of the latest changes that could help unlock opportunities for your clients.

The latest limited-edition launches

ModaMortgages has launched a limited-edition BTL range introducing new fixed-fee options. Alongside the existing 2% and 5% choices, the lender is now offering a 7% fee plus fixed-fee options of £7,499 and £9,999. These options are across both two- and five-year products up to 75% loan to value (LTV) that are available to both individual and limited company landlords. Single dwelling five-year fixed prices start from 4.74% with a 7% product fee, with the house in multiple occupation (HMO) or multi-unit freehold block (MUFB) equivalent priced at 4.84%.

Rely has added a new limited-edition range for landlords with 11 or more properties featuring rates up to 40 basis points (bps) lower than comparable products in the standard range. There are both two- and five-year options with a 5% fee, and they are available up to 75% LTV. Rates start at 3.92% for a two-year fixed and from 5.18% for a five-year fixed.

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Continuing the limited-edition theme, Aldermore launched limited-edition BTL products priced at 0.2% below the core range. For landlords with single residential investment properties, the new two-year fixed 75% LTV options are available at 5.89% with a £1,999 fee or 6.09% fee-free. Portfolio landlords can access an equivalent option at 5.84% with a £1,999 fee or 6.04% fee-free.

Other BTL changes

Fleet Mortgages has reintroduced fixed-fee and zero-fee five-year fixed options across its HMO/MUFB BTL range to help landlords find the right balance between upfront costs and rate. Now available is a fixed £1,499 fee, five-year fixed up to 75% LTV with £1,000 cashback priced at 5.99% and a zero-fee, five-year fixed up to 75% LTV with £1,000 cashback priced at 6.09%.

Molo has announced a reduction of up to 12bps across its standard and specialist BTL ranges. Standard BTL rates now start from 3.09% for a two-year fixed with a 6.5% product fee and 4.87% for a five-year fixed with a 7% fee. In the specialist BTL range, covering holiday lets, HMOs, MUFBs and new-build properties, prices now start from 3.19% for a two-year fixed with a 6.5% fee and 4.97% for a five-year fixed with a 7% fee.

Tipton and Coseley Building Society has enhanced its BTL proposition by cutting selected expat and limited company BTL rates by up to 0.3%. Expat BTL rates now start from 5.44%, with its two-year fixed reduced to 5.69% and a new five-year fixed available at 5.64%. Meanwhile, limited company BTL rates now start from 4.69%, giving brokers more competitive options for landlords operating through corporate structures.

Coventry has reduced all fixed rate products in its BTL range this month by up to 20bps, with lower options available for both new and existing customers. The reductions include a five-year fixed limited company remortgage product that is now available at 5.1% up to 75% LTV, with a £1,999 product fee for properties with an Energy Performance Certificate (EPC) rating of A-C.

And finally, Skipton International launched limited company lending for eligible expat and international property investors looking to purchase or remortgage a UK BTL property. Lending criteria include 65% LTV, a minimum loan size of £200,000, an application fee of £4,999, a maximum of two directors/shareholders, pure special purpose vehicle (SPV) only and companies must be UK, Guernsey or Jersey incorporated. The launch gives intermediaries a practical option for eligible non-UK resident directors using SPV structures.