Broker commitment to the BTL mortgage market is clearly aligned with lenders – Armstrong

It’s always a highlight of the year – a chance to connect with the many lenders and brokers we work with. But what truly stood out this time was the energy and engagement from the broker community. The conversations were non-stop, with brokers keen to explore solutions and opportunities to better serve their clients.

It was inspiring to see such enthusiasm and commitment, especially in the face of today’s challenging economic conditions. It’s clear that the advice sector isn’t just surviving – it’s thriving. 

The month of May brought us more rate reductions, new products and also criteria tweaks from a variety of lenders as they continue to offer greater flexibility and choice within their ranges. Let’s take a look at some of the changes we saw. 

Buy to let 

Pepper Money announced a return to buy to let (BTL) with a range designed to cater for landlords with many different circumstances.

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Criteria highlights include no credit scoring, use of valuer’s assessment of rent (rather than what the current tenant is paying), rent calculated at pay rate on five-year fixed products, and properties with an Energy Performance Certificate (EPC) rating of A-C allowed up to 80% loan to value (LTV).

The range of two- and five-year fixed products starts at 4.99% up to 70% LTV in the Pepper 48 Light range for those with a clean credit history. 

Kensington Mortgages launched a product for house in multiple occupation (HMO) and multi-unit block (MUB) clients. This five-year fixed is priced at 5.29% and is available up to 75% LTV with a £4,000 fee and free valuation. The lender has also announced five-year fixed rates in its BTL Core and BTL Prime ranges. These include its five-year eKo £500 reward up to 75% LTV, now priced at 5.59% with no fee (BTL Core), and a 5.39% product in the BTL Prime range available up to 75% LTV with no fee and free valuation. 

Paragon introduced 75% LTV five-year fixed rate products. Rates start from 4.34% for single self-contained properties and 4.69% for HMOs and MUBs. The products all come with a free valuation. The headline 4.34% rate is available for properties with an EPC rating of A-C and comes with a 5% product fee.

Principality released a range of two-year fixed BTL mortgages that all feature a £2,499 product fee. The 60% LTV product is priced at 4.05% with a maximum loan size of £1m. The 70% LTV at 4.2% and the 75% LTV at 4.3% both have a maximum loan size of £750,000. All the products benefit from no valuation fee. 

A reintroduction of 7% arrangement fee options on selected five-year products has been announced by Keystone Property Finance. The 7% arrangement fee is available on both five-year standard and specialist products at 65% and 75% LTV. The option provides landlords with a practical solution to achieve higher leverage when struggling to pass affordability stress tests.

Foundation Home Loans enhanced its Property Plus range by adding short-term lets, making rate reductions and removing its £100,000 minimum loan size threshold. The Short-Term Let (STL) Plus rates include both two- and five-year fixed rate options available up to 75% LTV. Rates start from 6.89% with a 2% fee and are aimed at properties being let on a short-term basis, through platforms such as Airbnb, or for use by contractors, tradespeople and remote workers seeking flexible and cost-effective accommodation.

Molo announced a 0.3% reduction on all its non-resident fixed BTL rates. Rates now start from 5.69% for a one-year fixed up to 85% LTV. A two-year fixed is now 7.44% and a five-year fixed is 7.24%, both up to 85% LTV. 

As part of a series of rate reductions, Hodge has reduced its two-year fixed Holiday Buy to Let (HBTL) rates by up to 0.2%. Rates now start from 5.75% for a two-year fixed holiday let product with a lender fee of £1,995 up to 75% LTV. The revised rates apply across both business and product transfers to ensure that existing Hodge customers also benefit.

Specialist residential 

Buckinghamshire Building Society increased the maximum LTV on its Credit Restore range from 70% to 75%. This change is designed to give brokers more flexibility when supporting credit impaired clients who may need a higher LTV to consolidate debt or improve their financial position. The change comes alongside the introduction of a three-year fixed rate product at 6.89% available up to 75% LTV with a £999 product fee. 

See you again next time when we’ll take a look at what lenders have been up to in June.