Buy-to-let market update – December

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 (BTL) lending markets. The information within this article is correct as at 27/11/2025.

Buy-to-let market update: –

BM Solutions – has changed their lending policy by increasing the maximum age at the end of term for BTL and let-to-buy (LTB) customers from 80 years old to 99 years old. The maximum age at the point of application will remain the same where the eldest customer must submit the application before their 75th birthday. This new maximum age policy applies to personal named and limited company mortgages.

The lender has also decreased selected BTL and LTB fixed rates by up to 0.29 per cent, rates start from 2.60 per cent, at the same time, they have also reduced their limited company BTL by up to 0.14 per cent and rates start from 3.84 per cent.

The Mortgage Works – has decreased rates on selected BTL products by up to 0.2 per cent. A one-year fixed rate is down by 0.2 per cent to 2.49 per cent with a 2 per cent lender fee and a two-year fix has decreased by 0.18 per cent to 2.71 per cent with a 3 per cent lender fee. Both products are available for purchase and remortgage up to 75 per cent loan to value (LTV).

In addition, a five-year fixed rate remortgage only decreased to 3.67 per cent with a 3 per cent lender fee, available up to 75 per cent LTV.

For limited companies, a two-year fixed rate has decreased to 4.89 per cent and a five-year fix has reduced to 4.94 per cent, both available for purchase, remortgage and further advances, up to 75 per cent LTV with a £1,495 lender fee and free valuation.

A limited company five-year remortgage rate has decreased to 4.99% with a £1,495 lender fee, free valuation and free legals.

The lender has raised its lending limits and refined its affordability criteria in a move designed to help professional landlords expand their portfolios.

The maximum loan per property has increased to £2 million for BTL and limited company applications, up from £1.5 million, and to £1 million for LTB, previously capped at £500,000.

Overall portfolio borrowing has also been lifted from £5 million to £7.5 million. It has also revised how it assesses affordability across a landlord’s portfolio. Under the updated aggregate portfolio policy, properties owned within a limited company structure will now be tested against an interest cover ratio (ICR) of 125 per cent, while those held personally will remain subject to a 145 per cent ICR.

Coventry for Intermediaries – has decreased BTL products by up to 0.1 percent.

Virgin Money – has decreased selected BTL fixed rate products by up to 0.15 per cent.

NatWest – has released 11 BTL products on two- and five-year fixed terms for purchase and remortgage.

Santander for Intermediaries – has decreased BTL rates by up to 0.18 per cent. Available for purchase, two-year fixed rates now start from 3.80 per cent and five-year fixes from 4.01 per cent, while remortgage rates have decreased to 3.77 per cent fixed for two years and 3.94 per cent fixed for five years.

Metro Bank – has decreased BTL rates for house in multiple occupation (HMO)/multi-unit freehold blocks (MUFB) (including personal and limited company) by up to 0.3 per cent, rates now start from 3.19 per cent.

HSBC – has decreased selected BTL remortgage rates by 0.1 per cent.

Accord Mortgages – has improved their rental income calculation by reducing interest ICR rates. For purchase or remortgage with capital raising where the product term is five years or more, the ICR rate is now the higher of 4.75 per cent or product rate +0.5 per cent (previously product rate +1 per cent). For straight switch remortgages with a product term of fewer than five years, the ICR rate is now the higher of 4.75 per cent or product rate +0.7 per cent, and for product terms of five years or more, the ICR rate is the higher of 4.75 per cent or product rate +0.35 per cent.

The lender has also reduced rates by up to 0.1 per cent across their BTL range.

Paragon Bank – has launched a multi-property BTL mortgage proposition to allow landlords to apply for four or more properties in a single application. Landlords can choose from any of Paragon’s product range for both purchase and remortgage and can select any property type in the application, including single self-contained units, HMOs and multi-unit blocks (MUBs).

To further enhance the flexibility of the product, properties included within the single application can be completed at separate times. Up to 99 properties can be included as part of the multi-property application.

There are no application fees across the range, including HMOs and MUBs, saving £299 per property, and only one independent legal advice certificate is required, rather than one per property.

The lender has announced that for landlords who own more than 4 BTL properties, there will be no minimum income requirements with immediate effect.

The lender has also launched a new shared exclusive range of products for SAL members. These selected products are 0.1 per cent cheaper when compared to the lender core range.

The Mortgage Lender (TML) – has decreased rates for selected two- and five-year fixed rates by up to 0.05 per cent. This includes its two-year fixed limited-edition rates at 75 per cent LTV with a £2,495 lender fee, 3 per cent lender fee and 5 per cent lender fee, which come to 5.14 per cent, 4.25 per cent and 3.29 per cent respectively.

For five-year fixed standard rates at 75 per cent LTV with 2 per cent, 3 per cent and 5 per cent lender fees, rates start from 4.81 per cent, 4.61 per cent and 4.26 per cent respectively.

Five-year fixed HMO deals at 75 per cent LTV with 2 per cent and 5 per cent lender fees come to 5.31 per cent and 4.66 per cent respectively.

Leeds Building Society for Intermediaries – has decreased rates on selected limited company BTL products, by up to 0.16 per cent.

Aldermore Bank – has expanded its BTL range with new limited-edition products.

There is a two-year fixed rate at 75 per cent LTV for individual and company landlords with single residential properties with a 3 per cent lender fee with a rate of 4.09 per cent.

The lender has also launched a two-year fixed rate at 75 per cent LTV with a 3 per cent lender fee with a rate of 4.04 per cent for those with multiple properties and a two-year fixed rate at 75 per cent LTV with a 3 per cent lender fee at 4.49 per cent for HMOs.

For further information on BTL 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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