Specialist buy-to-let (BTL) lenders are broadening their mortgage offerings, providing landlords with more fixed-rate options tailored to a variety of property types and borrower profiles. This expansion reflects the growing complexity and diversity within the landlord market, particularly for those refinancing properties such as HMOs, multi-unit freehold blocks, holiday lets, and for expat borrowers.

Foundation expands specialist BTL mortgage range

Foundation, an intermediary-only specialist lender, has significantly expanded its buy-to-let mortgage range to include new products for green properties, HMOs, multi-unit freehold blocks (MUFBs), holiday lets, and expat landlords. The lender notes that landlord cases are increasingly varied, both in terms of property types and borrower circumstances, necessitating a wider selection of mortgage options.

Among the new products is a Green standard HMO mortgage, priced at 5.59% with a 4% fee. This product also offers a £500 cashback incentive and waives the application fee for properties achieving an Energy Performance Certificate (EPC) rating of A to C, encouraging investment in more energy-efficient housing.

New fixed-rate products for complex property types

Foundation has introduced two new five-year fixed-rate mortgages aimed at landlords financing more complex property types. The multi-unit freehold block product is priced at 6.24% with a flat fee of £4,995, while the holiday let option carries a rate of 6.34% and the same fee. These offerings are designed to accommodate larger loan sizes and the unique challenges associated with these property categories.

Additionally, the lender has updated its expat mortgage range, launching a new F2 two-year fixed-rate product at 6.34% with a 1.5% fee. This reflects Foundation’s recognition of the diverse needs within the expat landlord market.

Industry perspective on product breadth

Grant Hendry, Foundation’s director of sales, emphasised the importance of product variety and consistency for brokers in the current market. He stated: “In the current market, brokers need a lender that can offer both consistency and breadth of product, particularly as landlord cases become more varied and often more complex.” Hendry added that these new products ensure brokers have appropriate options whether dealing with standard buy-to-let cases or more specialist areas such as HMOs, MUFBs, or holiday lets.

TSB recognised for competitive BTL mortgage

Separately, Moneyfactscompare.co.uk has named a TSB five-year fixed-rate buy-to-let mortgage as its BTL Pick of the Week, following recent rate reductions by the lender. The TSB product, available at 75% loan-to-value, has been cut by 0.15% to 4.74% until 31 July 2031. It carries a £1,995 product fee, includes a free valuation, allows overpayments, and is available to second-time buyers in Great Britain, with a maximum loan-to-value of 60%.

Caitlyn Eastell, a personal finance analyst at Moneyfacts, commented on the deal: “The latest update from TSB sees it reduce selected fixed rate mortgages for landlords. One deal to see a 0.15% cut is the five-year deal at 75% loan-to-value, it is now priced at 4.74% until 31 July 2031. Despite its large £1,995 fee, the deal sits at the top of its sector, and its free valuation incentive may offset some of the cost which may add to its appeal.”

What this means for landlords

The widening of specialist buy-to-let mortgage options offers landlords greater flexibility when refinancing or acquiring investment properties, especially those with more complex characteristics such as HMOs or holiday lets. The introduction of green mortgage products also signals a growing emphasis on energy efficiency within the rental sector, potentially encouraging landlords to invest in more sustainable properties.

For brokers and landlords alike, the increased product range from lenders like Foundation and competitive offerings from mainstream banks such as TSB provide more tailored solutions to meet diverse financing needs. This can help landlords optimise their borrowing costs and better manage their portfolios in an evolving market.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/