Specialist lenders cut rates and refresh products, helping brokers support landlords in challenging market
Several lenders have announced updates to their buy-to-let and development finance products, aiming to provide greater flexibility in a market influenced by fluctuating interest rates and evolving investor needs.
Buckinghamshire Building Society has reintroduced discounted rates across its Everyday BTL and Everyday Expat BTL ranges. The changes are part of a broader product refresh that includes renaming its core BTL range from ‘Standard’ to ‘Everyday’. The new offerings include a two-year discounted rate of 5.39% (3.00% discount) up to 80% loan-to-value (LTV) for Everyday BTL and a 5.59% rate (2.80% discount) up to 75% LTV for Everyday Expat BTL. Both are available for loans between £50,000 and £500,000, with a product fee of £1,195.
The lender has also revised its Credit Restore product, reducing the term from three years to two, offering a 6.45% rate (1.94% discount) up to 70% LTV with a £999 fee.
“We’ve reintroduced discount rates in areas where we see brokers needing more flexibility to support landlords who are still actively investing, but also want room to adapt as the market moves,” said Claire Askham (pictured far left), head of mortgage sales at Buckinghamshire Building Society. “It’s about offering a good mix of choice while keeping things simple and competitive.”
Meanwhile, Keystone Property Finance has implemented its second round of rate reductions in a week, cutting up to 10 basis points (bps) across its BTL products. The changes affect two-year deals and most five-year offerings, including its standard, specialist, cashback, product transfer, PT Plus, and Switch & Fix ranges.
Updated rates now begin at 3.14% for standard at 70% LTV, 3.19% for specialist at 70% LTV, 4.49% for cashback at 65% LTV, 4.64% for expat at 65% LTV, 4.79% for holiday let at 65% LTV, and 4.79% and 6.09% for Product Transfer/PT Plus and Switch & Fix respectively, both at 65% LTV.
“With markets still unpredictable, we’re giving brokers and landlords the clarity they need,” said Elise Coole (pictured second from left), managing director at Keystone Property Finance. “These cuts strengthen our competitive range.”
New lender ModaMortgages has also lowered its BTL rates, with two-year fixed deals starting from 3.39% and five-year options from 4.89%. The changes follow the introduction of new product fee options, including a £0 fee and various percentage-based fees, allowing borrowers to tailor upfront costs to their investment strategies. The lender’s products are available to a broad base, including individuals, limited companies, and first-time landlords, with LTVs up to 75%.
“These reduced rates give brokers even more choice,” said Darrell Walker (pictured centre), group sales director at ModaMortgages. “When combined with our new product fee options on our limited edition products, [they] will help widen market access for those looking to invest in a rental property.”
Another buy-to-let lender, Zephyr Homeloans, has announced rate reductions across its two- and five-year fixed rate mortgage products. For properties with an energy performance certificate (EPC) rating of ‘A’ to ‘C’, rates include 2.94% on a two-year fixed standard mortgage and 4.64% on a five-year fixed standard mortgage, both up to 65% LTV with a 7% fee. The same rates apply to mortgages for new builds and flats above commercial properties. For houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), the lender is offering 3.09% for a two-year fix and 4.74% for a five-year fix, also with a 7% fee.
For properties with an EPC rating of ‘D’ or ‘E’, the lender is offering 3.04% and 4.69% on two- and five-year fixed rate standard mortgages, respectively, with the same terms for new builds and flats above commercial units. Rates for HMOs and MUFBs under these EPC categories are 3.19% and 4.79%.
“We’re pleased again to be able to provide reductions for brokers to offer to their landlord customers,” said Andrew Rowe (pictured second from right), head of sales at Zephyr Homeloans.
In a similar move, Alternative Bridging Corporation has reduced pricing on its development finance products, with rates now starting from 0.995% per month up to 70% of gross development value (GDV). The update applies to residential-led and mixed-use schemes.
“We know the importance of strong funding terms in today’s market,” said James Bloom (pictured far right), director at Alternative Bridging. “That’s why we’ve sharpened our development rates to help brokers deliver even better value to their clients.”
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