Buy-to-let market update
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 31/01/2025.
BTL market update: –
Coventry for Intermediaries – has reduced all fixed rate BTL products and portfolio BTL products.
Santander for Intermediaries – has increased selected fixed rate BTL products by up to 0.11 per cent and reduced others, by up to 0.16 per cent.
BM Solutions – has increased rates by up to 0.26 per cent for BTL and let-to-buy products.
TSB – has reduced two-year fixed rate BTL products by up to 0.2 per cent.
Virgin Money – has added a five-year fixed rate BTL Retrofit Boost product with a £1,995 lender fee and £5,000 cashback at 75 per cent loan to value (LTV) at 5.07 per cent. The cashback must be used for eligible energy-efficient home improvements.
Paragon Bank – has introduced new limited-edition five-year fixed rate products. With rates from 5.14 per cent for single self-contained properties, and 5.39 per cent for houses in multiple occupation (HMOs) and multi-unit blocks (MUBs). These products benefit from a free mortgage valuation.
The Mortgage Lender (TML) – has made a number of rate cuts across its BTL products. The reductions apply to two- and five-year fixed rates, including options for standard, HMOs, MUBs, Fee Saver and Multi Loan products. Rates now start from 4.39 per cent for standard properties and 4.59 per cent for HMOs and MUBs.
Precise – has reduced rates across its complete bridging range, as well as introducing a new developer exit product. The specialist lender, which is part of OSB Group, has also revised its criteria and expanded LTV bands. Bridging rates now start from 0.62 per cent per month, with products available from 55 per cent to 75 per cent LTV.
Aldermore Bank – has launched a two-year fixed limited-edition BTL product for landlords with properties with an EPC rating of A, B or C. The lender has also reduced rates by 0.1% on its existing two- year fixed limited-edition products.
For new customers and individual and company landlords with single residential investment properties there is a reduced two-year fixed 4.79 per cent, up to 75 per cent LTV with 3 per cent lender fee and a new EPC A, B and C two-year fixed 4.69 per cent, up to 75 per cent LTV with 3 per cent lender fee.
Also, multi property for individual and company landlords with residential investment properties, the lender is offering a reduced two-year fixed 4.74 per cent, up to 75 per cent LTV with 3 per cent lender fee.
Dual demand simplified – The lender has reviewed their criteria and ask that properties must have suitable, long-term demand. Owner-occupier demand for rental properties will no longer be required. The lender has also lowered their minimum property value – the minimum property value for single residential units has been reduced from £60,000 to £50,000.
Metro Bank – has increased their maximum loan sizes across their entire BTL mortgage range. This includes its limited company BTL products which the lender launched in 2024.
Vida Homeloans – has improved their BTL criteria, for remortgages with no additional borrowing, the lender will now stress test at the pay rate rather than a notional rate.
Foundation Homeloans – has launched new Property Plus and HMO Plus products. The semi-exclusive products are available through limited distribution, including SAL Mortgages/3mc.
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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