Specialist buy to let lenders have introduced a series of product changes, including rate reductions, broader lending criteria, and increased loan-to-value (LTV) limits. These adjustments aim to attract landlord business in a competitive market and offer greater flexibility for property investors.

Overview of recent lender changes

Several buy to let lenders have recently revised their offerings to better support landlords. Pepper Money has led the way by reducing rates on its HMO (house in multiple occupation) range by up to 25 basis points on two-year fixed deals and up to 15 basis points on five-year fixed products. Additionally, Pepper has expanded eligibility to include properties with EPC ratings of D or E, whereas previously only properties rated A to C qualified.

These products are available to both individual borrowers and limited companies, reflecting the diverse structures landlords use to hold property.

New fixed deal rates and lending approach at Pepper Money

Pepper Money now offers headline rates of 4.44% on two- and five-year fixed deals up to 70% LTV, with a 7% completion fee. The lender assesses affordability using interest coverage ratios rather than personal income, which can be advantageous for landlords whose rental income forms the primary repayment source. Rental income is verified by an independent RICS surveyor, adding rigour to the application process.

Paul Adams, Pepper’s sales director, stated: “These latest enhancements demonstrate our ongoing commitment to supporting landlords in a challenging market. By reducing rates across key buy to let products and broadening our HMO criteria, we’re responding directly to broker feedback and the needs of landlords.”

Darlington Building Society increases maximum LTV

Darlington Building Society has raised the maximum LTV on its limited company buy to let range from 75% to 80%. This change follows the mutual’s entry into the buy to let sector in November 2025 and reflects growing demand from landlords using special purpose vehicle (SPV) structures.

The society offers a two-year fixed rate at 5.29% and a five-year fixed rate at 5.39%, each with a £999 product fee plus valuation costs. These deals are available for purchases and remortgages, including holiday lets, and are open to first-time buyers and landlords without minimum income or ownership period requirements.

Chris Blewitt, head of intermediary distribution at Darlington, commented: “As a lender that understands individual cases and the profile behind them, we felt the market needed our support now more than ever. Raising LTV to 80% gives brokers an extra tool when helping clients structure their borrowing in a way that suits long term plans.”

CHL Mortgages launches limited edition tracker products

CHL Mortgages has introduced a limited edition range of two-year tracker products at 75% LTV, designed for landlords seeking flexibility. These trackers cover both single dwelling and HMO properties, with no early repayment charges and options for either a 2% or 5% fee.

Pricing for single unit homes starts at 5.50% with a 2% fee or 4.10% with a 5% fee. HMO trackers are priced at 5.60% with a 2% fee and 4.20% with a 5% fee. Darrell Walker, CHL’s group sales director, said: “Following on from the introduction of a new range of 75% and 80% LTV products, the launch of these trackers reinforces our commitment to providing a competitive, well-rounded suite of specialist mortgage solutions which are designed to support brokers and landlords in an ever-changing market.”

Implications for UK landlords and agents

These product changes from specialist buy to let lenders provide landlords and letting agents with more options to finance property purchases and remortgages. The increased LTV limits and expanded lending criteria, particularly for HMOs and limited company borrowers, may enable landlords to access higher loan amounts or finance properties that previously did not qualify.

Lower fixed rates and the introduction of flexible tracker products can help landlords manage borrowing costs more effectively in a market where interest rates and lending conditions have been volatile. The use of interest coverage ratios and independent rental income verification also reflects a more tailored approach to affordability assessments, which may benefit professional landlords with strong rental portfolios.

Upcoming TLA Trusted Partners Hub

The Landlord Association (TLA) is launching 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 here: https://landlordassociation.org.uk/become-a-tla-service-partner/.