HSBC UK has lowered its buy-to-let affordability stress rates for domestic borrowers, aiming to widen access to finance and help stabilise rental supply amid ongoing cost pressures. Meanwhile, LendInvest Mortgages has launched a range of new incentivised buy-to-let products for 2026, offering landlords greater choice and flexibility in mortgage options.

HSBC Lowers Stress Rates to Support Landlords

HSBC UK’s recent adjustment to buy-to-let (BTL) affordability stress rates is designed to provide landlords with increased flexibility when refinancing or seeking additional borrowing. This change allows landlords to access higher loan amounts relative to rental income while maintaining responsible lending standards.

For example, a landlord seeking a mortgage of £184,000 at 80% loan-to-value (LTV) with a monthly rent of £1,290 would previously have been capped at £165,000. Under the new stress testing approach, the full £184,000 is now achievable, representing a 10% increase in borrowing capacity. Similarly, at 70% LTV, a borrower targeting £280,000 supported by rent of £1,814 would have been limited to £254,000, but this ceiling has now been raised to the full £280,000, a 9% uplift.

Strategic Support for the Private Rented Sector

HSBC UK emphasises that this recalibration forms part of a broader strategy to support the private rented sector (PRS) by easing affordability constraints without compromising credit discipline. This follows earlier policy changes, such as the introduction of 80% LTV BTL products in March 2025 and the implementation of top slicing in October 2025, which allows personal income to offset rental shortfalls during affordability assessments.

The lender has also simplified stress testing across its mortgage range, including higher LTV products, with a particular focus on encouraging lending for energy-efficient homes. Oli O’Donoghue, HSBC’s head of mortgages, stated: “By lowering stress rates, we are helping more landlords enter or remain in the buy-to-let market. Lowering barriers to finance, and easier refinancing options, can help landlords manage costs, supporting greater stability in the rental sector.”

LendInvest Launches New Buy-to-Let Products for 2026

In parallel, LendInvest Mortgages has introduced a new suite of incentivised buy-to-let mortgage deals for 2026. These include five-year fixed-rate products at 75% LTV, offering landlords either £400 cashback or a free standard valuation. Brokers and clients can select between a 5% arrangement fee product priced at 4.84% or a 2% fee option with an initial rate of 5.49%, providing flexibility to balance upfront costs against interest rates.

This launch follows a recent revision of LendInvest’s BTL lending criteria, which removed minimum income requirements and expanded lending for large multi-unit freehold blocks (MUFBs) up to 20 units. Additionally, the lender has set a minimum unit size of 25 square metres and opened lending to expatriate borrowers in individual names.

Paula Mercer, LendInvest’s sales director, commented: “With industry forecasting another increase in BTL lending in 2026, we’re pleased to offer these new incentivised products that will provide more options for brokers and their landlord clients. From no minimum income requirement across all of our BTL products to increasing Large MUFBs up to 20 units, we’ve reinforced that commitment.”

Implications for UK Landlords and Agents

These developments from HSBC and LendInvest are significant for landlords and letting agents navigating the current market. The easing of stress rates by HSBC may enable landlords to refinance existing mortgages or secure additional borrowing to manage rising costs or invest in property improvements, including energy efficiency upgrades. This could help maintain rental supply stability in a challenging economic environment.

LendInvest’s new products offer further options for landlords, particularly those managing larger portfolios or seeking flexible fee structures. The removal of minimum income requirements and expanded MUFB lending criteria may open opportunities for a broader range of landlords, including expatriates, to access finance.

Both lenders’ focus on responsible lending and support for energy-efficient properties aligns with wider regulatory and market trends encouraging sustainability in the PRS.

Looking Ahead: Trusted Partners Hub Launch

The Landlord Association (TLA) is preparing to launch a new Trusted Partners Hub in the first quarter of 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest to join the hub, enhancing access to trusted services within the sector.