Buy-to-let market update: February 2025

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 31/01/2025.

Coventry for Intermediaries – has reduced all fixed rate buy-to-let products and portfolio buy-to-let products.

Santander for Intermediaries – has increased selected fixed rate buy-to-let 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 buy-to-let and let-to-buy products.

TSB - has reduced two-year fixed rate buy-to-let products by up to 0.2 per cent.

Virgin Money -  has added a five-year fixed rate buy-to-let Retrofit Boost product with a £1,995 lender fee and £5,000 cashback at 75 per cent 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 HMOs and multi-unit blocks. These products benefit from a free mortgage valuation.

Landbay – has reduced rates by up to 0.2 per cent across their buy-to-let product range. The standard two-year fixed rate products, with rates now starting at 3.59 per cent at up to 75 per cent loan-to-value (LTV). The 0.2 per cent reduction also includes the automated valuation model (AVM)-supported range of standard two-year fixed rate products. The standard five-year fixed rate products which are available at up to 55 per cent LTV have been cut by 0.1 per cent. A standard AVM non-portfolio five-year fixed at 75 per cent LTV has a rate of 5.39 per cent with a 2 per cent lender fee. Rates have also been reduced on non-portfolio products, which are suitable for landlords with three or less mortgaged properties.

The lender has also made recent reductions across its small HMO/MUFB products, with rates down by up to 0.15 per cent. All products are available using Landbay’s variable fee structure for enhanced affordability.

The Mortgage Lender (TML) – has made a number of rate cuts across its buy-to-let products. The reductions apply to two- and five-year fixed rates, including options for standard, houses in multiple occupation (HMOs), multi-unit block (MUB), 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.

Kent Reliance for Intermediaries – has reduced rates across their core products and their limited-edition range. Limited-edition rates now start from 3.74 per cent.

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 launches a two-year fixed limited-edition buy-to-let 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.

Fleet Mortgages – has announced the maximum loan amount for two-year fixed rate fixed fee products has increased from £350k to £750k. The lender has also reduced selected five-year fixed rate products by 0.3 per cent.

Family Building Society – has improved its buy-to-let lending criteria. The maximum LTV available across all UK Landlord (including Offset), Limited Company, and Expat buy-to-let product ranges has been increased to 75 per cent. Applications for Multi-Unit Freehold Blocks (MUFBs) will remain at 70 per cent.

Metro Bank – has increased their maximum loan sizes across their entire buy-to-let mortgage range. This includes its limited company buy-to-let products which the lender launched in 2024.

Nottingham Building Society – has launched a range of new 80 per cent LTV buy-to-let products. Alongside its existing 75 per cent LTV mortgages, the lender has added new two and five-year 80 per cent LTV products to its standard and limited company buy-to-let ranges.  The lender has also increased the maximum number of properties a landlord can buy-to-let through the lender to five and reduced the minimum age of applicants to 21 – down from 25.

Vida Homeloans -  has improved their buy-to-let criteria, for remortgages with no additional borrowing, the lender will now stress test at the pay rate rather than a notional rate.

ModaMortgages - has now formally launched with a range of limited-edition buy-to-let products. The lender offers a limited-edition range of two- and five-year products, with rates starting from 3.74 per cent up to 75 per cent LTV along with a choice of either a 2.5 per cent or 5.5 per cent lender fee. The lender considers various landlord profiles, including those with small and large portfolios, limited company, houses in multiple occupation/multi-unit freehold blocks, individual and first-time landlords.

CHL Mortgages – has added products with higher lender fee options to its limited-edition buy-to-let range. The limited-edition range now features new 6 per cent and 7 per cent lender fee options on the two-year fixed rate range and a new 6 per cent lender fee option on the five-year fixed rate range, both available up to 75 per cent LTV. Rates for standard two-year fixed products now start from 3.12 per cent, with five-year fixed products starting from 4.76 per cent. The lender has also reduced rates by up to 0.3 per cent across its CHL 2 core product range with two-year fixed products now starting from 3.27 per cent and five-year fixed products starting from 5.06 per cent.

Foundation Homeloans - has launched new Property Plus and HMO Plus products. The semi-exclusive products are available through limited distribution including NRLA Mortgages/3mc.

Zephyr Homeloans – has increased all fixed rates by 0.25 per cent.

Quantum Mortgages – has added two new buy-to-let products. A larger loans range and a first-time landlord mortgage.

For further information on buy-to-let mortgages both for individuals and limited companies please contact NRLA Mortgages on 0161 341 0581 or visit the NRLA website https://www.nrla.org.uk/services/mortgages.

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.

NRLA Mortgages is a trading name of LPTE Limited which is an Introducer Appointed Representative of 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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