Buy-to-let market update – May 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 (BTL) lending markets. The information within this article is correct as at 28/05/2025.

Buy-to-let market update: –

BM Solutions – has reduced selected rates for BTL and let-to-buy (LTB) products. The lender has also reduced the minimum stress rate for two-year fixed, like-for-like remortgage applications to 5 per cent (previously 5.5 per cent) as well as reducing the minimum stress rate for all five-year fixed applications to 4.5 per cent (previously 5 per cent).

The Mortgage Works – has reduced rates by up to 0.3 per cent across selected BTL and limited company mortgage products for new customers. Among the new business rates which have been reduced is a two-year fixed BTL deal for purchase and remortgage at 2.79 per cent with a 3 per cent lender fee, available up to 65 per cent loan-to-value (LTV).

There is also a two-year fixed BTL remortgage product at 3.29 per cent with a 3 per cent lender fee available up to 75 per cent LTV. This deal also includes a free valuation and free legals.

For landlords operating via limited companies, a two-year fixed rate at 4.14 per cent with a 3 per cent lender fee is now available for purchase and remortgage up to 75 per cent LTV. This product includes a free valuation.

The lender has updated its criteria for company landlords by removing the need for all mortgage applicants to be directors. The lender now accepts applications where one applicant is only a shareholder, who owns at least 20 per cent of the shares in the company.

Santander for Intermediaries – has increased BTL two-and five-year fixed rates for purchase and remortgage products by 0.1 per cent.

TSB – has reduced selected two-and five-year fixed rate BTL products by up to 0.1 per cent up to 60 per cent LTV. The lender has also increased 75 to 80 per cent LTV five-year fixed rate products by 0.2 per cent.

Coventry for Intermediaries – has launched limited company BTL mortgages, available for both remortgage and purchase. The new offering allows for up to four directors/shareholders to be named on an application. Other criteria changes have also been implemented for landlord customers by increasing the maximum lending exposure to £2.5m (from £2m) and landlords can now have 7 properties with the society and the total portfolio limit has been increased to 15 properties.

Virgin Money – has increased selected BTL fixed rate products by 0.1 per cent.

Paragon Bank – has launched new 75 per cent LTV five-year fixed rate products. Rates start from 4.34 per cent for single self-contained properties and 4.69 per cent for houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), all of the products benefit from a free mortgage valuation. The lender has also reduced their five-year reference rate for single self-contained properties to 4.5 per cent. The lender has also launched 80 per cent LTV products for both purchase and remortgage.

Precise – has reduced BTL rates by up to 1 per cent. The lender is offering portfolio landlords rates starting from 4.14 per cent with new discounts for 55 per cent and 65 per cent LTVs for non-HMOs. There are simplified lender fee options of 2 per cent and 4 per cent and the lender is offering these terms for both two-and five-year fixes.

The Mortgage Lender – has reduced rates by 0.2 per cent on selected BTL products.

Vida Homeloans – has reduced rates on its BTL products by up to 0.5 per cent.

Aldermore Bank – has reduced rates on selected BTL products. These include HMOs and MUBs two-year fixed rates which have been lowered by up to 0.3 per cent and start from 3.69 per cent and come with 3 per cent and 5 per cent lender fee options.

Five-year fixed rates have been reduced by up to 0.35 per cent and start from 4.44 per cent and come with zero, 1.5 per cent, 5 per cent, 7 per cent and £1,999 lender fee options.

For individual and company landlords with single residential properties, two-year fixed rates have reduced by up to 0.2 per cent and start from 3.49 per cent with no fee, 1.5 per cent, 3 per cent and 5 per cent lender fee options.

Foundation Homeloans – has announced a series of enhancements to its Property Plus range, including the acceptance of short-term lets (STL), rate reductions across the existing Plus range, and the removal of its £100,000 minimum loan size threshold.

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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