Buy-to-let market update – July 2025

By Doug Hall, director, 3mc

Welcome to ‘Buy-to-let market’, a column aimed at providing you with recent criteria and product updates within the buy-to-let lending markets. The information within this article is correct as at 31/07/2025.

Buy-to-let market update: –

BM Solutions – has launched its digital buy-to-let (BTL) service for limited companies. The lender is offering new limited company products on two- and five-year terms. There are approximately 32 limited company deals available with pricing starting from 3.99 per cent.

The Mortgage Works – has decreased selected buy-to-let rates by up to 0.35 per cent, with rates now starting from 2.79 per cent.

Remortgage highlights include a two-year fix at 2.99 per cent up to 65 per cent LTV and a five-year fix at 3.82 per cent up to 75 per cent LTV, both with a 3 per cent lender fee, free valuation and free legals. A limited company five-year fixed rate – available for purchase, remortgage and further advance – has decreased to 4.67 per cent at 75 per cent LTV with a 3 per cent lender fee.

The lender has also decreased its stress rate by 0.5 per cent on new buy-to-let (BTL) applications up to 65 per cent Loan to Value for selected mortgages. These include five-year fixed rate terms or like for like remortgage (all fixed product terms). The new stress rate will be 4 per cent or pay rate whichever is higher.

Santander for Intermediaries – has decreased all two-year fixed buy-to-let remortgages at 60 per cent Loan to Value by 0.05 per cent.

HSBC – has decreased rates on various buy-to-let product rates. This includes a five-year fix at 60 per cent LTV with a £999 lender fee, which has decreased from 4.02 per cent to 3.96 per cent.

Coventry for Intermediaries – has decreased all limited company buy-to-let rates by up to 0.19 per cent, with products available for remortgage and purchases cases.

A two-year fixed rate purchase product has decreased to 5.81 per cent at 75 per cent LTV with no lender product fee, while a five-year remortgage product is down to 5.10 per cent at 75 per cent LTV with a £3,999 lender fee.

Accord Mortgages – has decreased rates on its buy-to-let range by 0.1 per cent.

Paragon Bank – has introduced a streamline buy-to-let (BTL) mortgage application journey for landlords with up to 15 properties. The lender will use its new mortgage origination platform to pre-populate much of the application information required.

The new application will initially only ask for a valuation and where the landlord holds more than three BTL properties, a property schedule.

The new process is suitable for individual and limited company landlords with a portfolio of up to 15 properties, single self-contained properties, those up to 75 per cent loan-to-value (LTV) and up to £2m exposure with the lender.

The lender has also launched a shared exclusive range of products for SAL members. This shared exclusive range of products is aimed at landlords and developers investing in single self-contained (SSC), houses in multiple occupation (HMOs) and multi-unit blocks (MUBs). Paragon Bank and SAL Mortgages are excited to offer members shared exclusive access to 2-year fixed rates, on the Paragon 75 per cent Range.

All semi-exclusive 2-year fixed rate (SSC) products offer a free valuation, no lender application fee and £350 cashback (£350 cashback not available on Paragon core range products).

The 2 year-fixed rate (HMO/MUB) product offers a free valuation and no lender application fee (usually £299 on Paragon core range products). 

The Mortgage Lender (TML) – has enhanced its criteria for first time landlords, increasing the maximum loan size to £500,000. The lender has also expanded the eligibility on HMO and MUB applications.

Vida Homeloans – has decreased rates by up to 0.51 per cent across new business products. The minimum loan size for selected limited edition buy-to-let products has been reduced from £200,000 to £150,000, broadening access to more clients. The lender has also refined its interest coverage ratio (ICR) criteria to better reflect borrower tax status.

A new blended ICR of 135 per cent has been introduced for applications involving both basic and higher rate taxpayers, a reduction of 5 per cent. The higher rate taxpayer ICR has increased from 140 per cent to 145 per cent and basic rate and SPV ICRs remain unchanged at 125 per cent.

In a ‘summer special’ offer, the lender has temporarily increased the maximum allowable size for HMOs from 6 to 8 bedrooms and MUBs from 6 to 8 units. These changes apply to properties held on a single freehold title, with valuation thresholds remaining unchanged.

Metro Bank – has expanded its specialist buy-to-let (BTL) range with products now available for houses in multiple occupation (HMOs) and multi-unit freehold block (MUFB) properties.

Shawbrook Bank – has enhanced its lending criteria to support landlords investing in serviced accommodation.

Aldermore Bank – has lowered its interest cover ratio (ICR) and improved its criteria for houses in multiple occupation (HMOs) to support the growing number of landlords moving into this market. For HMO borrowing, individuals who are higher- or additional-rate taxpayers will be subject to an ICR of 145 per cent, down from 160 per cent. For companies or individual basic-rate taxpayers, the ICR has been reduced from 140 per cent to 130 per cent. Top slicing has been removed for both categories of HMO borrowers.

Where borrowing is for residential investments or multi-unit blocks (MUBs), the ICR for higher- and additional-rate taxpayers has been lowered from 145 per cent to 140 per cent. There is no change for companies or individuals paying the basic rate of tax, who will continue to be assessed on an ICR of 125 per cent. Top slicing for both borrower categories has also been removed.

Foundation Homeloans – has enhanced its core buy-to-let (BTL) range with the launch of a new 85 per cent Loan to Value (LTV) product. The specialist lender’s F1 BTL product offers a five-year fixed rate of 6.49 per cent, a minimum loan size of £100,000 with no lender product fee. It is available to both individuals and limited companies.

For further information on buy-to-let mortgages both for individuals and limited companies please contact SAL Mortgages on 0131 450 7169 or visit the SAL website www.scottishlandlords.com .

Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for a specific product. The product rates are correct at the time of writing the article and are subject to change.

This is an advertisement only and in no way should be viewed as a personal recommendation or advice. Before a recommendation of the suitability of the product can be given, we will direct you to 3mc (UK) Limited who can provide specialist mortgage advice. As part of this they will ask questions so that they can fully understand your circumstances before giving advice.

SAL Mortgages is operated exclusively for the Scottish Association of Landlords (SAL) by 3mc (UK) Limited who is Authorised and Regulated by the Financial Conduct Authority and is entered on the FS Register under reference 302992.

Please note: 3mc can advise/arrange Business Buy to Let (BBTL) and Consumer Buy to Lets (CBTL). Of the two, only Consumer Buy to Lets are regulated by the FCA.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

ANY PROPERTY USED AS SECURITY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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