Mortgage lenders have recently introduced reductions and new options for buy-to-let (BTL) mortgage rates, offering landlords greater flexibility and more competitive terms amid an uncertain interest rate environment.

Hinckley & Rugby expands BTL offerings

Hinckley & Rugby for Intermediaries has launched new buy-to-let mortgage products with loan-to-value (LTV) ratios up to 80%. These include two-year discounted rates starting from 4.99%, aimed at landlords purchasing or refinancing properties.

The mutual lender highlights that the increased LTV range provides brokers with more choices in a market segment where options have been limited, particularly for landlords operating through limited company structures.

In addition, Hinckley & Rugby has reduced the rate on its limited company BTL two-year discounted product at 70% LTV by 0.4%, lowering it from 5.40% to 5%. This product carries a £1,249 fee.

Focus on flexibility for landlords

The lender emphasises that these changes are designed to assist brokers working with landlords who prefer shorter-term mortgage flexibility while the outlook for interest rates remains uncertain.

Laura Sneddon, head of mortgage Sales and Distribution at Hinckley & Rugby, explained: “Five-year fixed rates have been the default for many landlords for a reason, particularly from an affordability and rental coverage perspective, but that doesn’t always reflect how clients are thinking in the current market.”

She added, “By introducing 80% LTV options and adjusting pricing across the range, we are giving brokers more scope to structure cases around those real conversations, rather than relying on a single approach.”

HSBC reduces selected BTL fixed rates

HSBC has also cut selected fixed buy-to-let mortgage rates by up to 0.09%, according to Moneyfactscompare.co.uk. Its two-year fixed-rate mortgage at 60% LTV for second-time buyers is now priced at 4.94%, fixed until 31 July 2028.

This product has no fee, includes a free valuation, and permits overpayments up to 20%. It is available throughout Great Britain and Northern Ireland.

Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, commented: “Alongside reducing variable tracker rates, HSBC has also reduced selected fixed rates for landlords by up to 0.09%. The two-year option at 60% LTV for second-time buyers has seen a smaller cut and is now priced at 4.94%. Landlords looking to minimise upfront costs may be pleased to note the no payable fee and free valuation incentive.”

InterBay cuts rates on limited edition products

InterBay, a specialist commercial lender within the OSB Group, has reduced rates on selected limited edition products in its commercial investment and semi-commercial mortgage ranges. The lender has cut 50 basis points from its two-year fixed-term mortgage and 20 basis points from its five-year fixed product.

Marc Callaghan, head of commercial lending at InterBay, said: “These rate reductions are another clear demonstration of our commitment to supporting brokers and their clients in a fast moving market. By cutting up to 50 bps across limited edition products, we’re making it easier to structure deals with confidence and deliver better outcomes for investors.”

Yorkshire Building Society restructures Homes division

Yorkshire Building Society (YBS) has reorganised its Homes division, consolidating buy-to-let, commercial, and residential lending into a simpler operating model. The Society states this change aims to support future growth and improve service for both customers and brokers.

A new director of distribution role will oversee strategic partnerships and broker relationships through Accord Mortgages and YBS Commercial Mortgages, as well as direct advised customers.

Tom Simpson, managing director of Homes at YBS, said: “We are proud of the service we already provide to brokers and customers. These changes are about building on our strengths and ensuring we are well-set to support brokers and customers now and in the future.”

What this means for landlords

These recent rate cuts and product launches reflect lenders’ recognition of the evolving needs of landlords, particularly those seeking shorter-term mortgage options and higher loan-to-value products. The availability of discounted two-year fixed rates and increased LTV options provides landlords and brokers with greater flexibility to tailor financing solutions to individual circumstances.

Moreover, reductions in fees and added incentives such as free valuations help minimise upfront costs, making buy-to-let investments more accessible. The restructuring of lending divisions by established societies like YBS also suggests a focus on streamlining services to better support landlords and brokers in a competitive 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/