Landlords get new buy to let mortgage rate cuts

UK landlords seeking to refinance their buy-to-let mortgages have new options following recent rate cuts and product launches by three lenders. These changes offer some relief amid rising borrowing costs, providing more competitive rates and flexible terms across various mortgage products.

Leeds Building Society reduces buy-to-let rates

Leeds Building Society has lowered rates across its buy-to-let mortgage range by up to 0.22%. Notably, its five-year fixed rate product, available until 31 August 2031, has been cut from 4.89% to 4.67%. This product is offered up to 60% loan to value (LTV), includes a £1,499 completion fee, and comes with a free standard valuation worth up to £999.

Jonathan Thompson, senior product and pricing manager at Leeds Building Society, commented: “We’re pleased to be reducing mortgage rates by up to 0.22% across our range, providing further support to borrowers at a time when affordability remains a key concern.”

Foundation relaunches and expands buy-to-let offerings

Foundation, an intermediary-only specialist lender, has reintroduced several buy-to-let products that were withdrawn earlier this year. It has also cut rates on its multi-unit freehold block (MUFB) and holiday let products. Among the relaunches is the ERC3 fixed-rate product, which carries early repayment charges for three years within a five-year term.

The lender has added five new products, including F1 and F2 remortgage-only five-year fixed rates at 75% LTV. The F1 product is priced at 6.44%, and the F2 at 6.54%. Both include a free standard valuation, £500 cashback, and no application fee.

New five-year fixed buy-to-let deals from Foundation

Foundation has introduced an F1 ERC3 five-year fixed rate at 75% LTV, priced at 6.39% with a 1.5% fee. Its F1 EPC Saver five-year fixed product is offered at 6.49%, with a 1.25% fee, £1,000 cashback, and a free energy-saving audit via Vibrant Energy Matters. Additionally, the F2 short-term let five-year fixed rate at 75% LTV is priced at 6.74%, with a 1.25% fee, no application fee, and a free standard valuation.

The lender has reduced its MUFB five-year fixed rate at 75% LTV by 0.15% to 6.09%, with a £4,995 fee. Its holiday let five-year fixed rate at 75% LTV has also been cut by 0.10% to 6.24%, with the same fee.

Grant Hendry, director of sales at Foundation, said: “We think the return of the ERC3 five-year fixed rate will be particularly welcome. It’s a product that has been consistently popular with brokers, especially for landlord clients who want a balance between early repayment flexibility and longer-term certainty.”

The Mortgage Works unveils new buy-to-let products

The Mortgage Works (TMW) has launched new buy-to-let mortgage products, including one-year fixed rates and a two-year tracker. For new customers, TMW has reduced selected buy-to-let, house in multiple occupation (HMO), and limited company rates across one-, two-, and five-year fixed terms.

Its two-year fixed buy-to-let product for purchase and remortgage has been cut by 0.12% to 3.32%, with a 3% fee, available up to 65% LTV. The two-year fixed limited company buy-to-let product is now 4.34%, reduced by 0.15%, with a 3% fee and free valuation, available up to 75% LTV.

Additional buy-to-let reductions and new products from TMW

TMW has also reduced a two-year fixed limited company HMO product by 0.20% to 4.39%, with a 3% fee, available up to 75% LTV. New products include a one-year fixed buy-to-let mortgage for purchase and remortgage at 4.34%, available up to 75% LTV with a 1% fee. There is also a remortgage-only one-year fixed product at 4.84%, up to 75% LTV, which includes a 1% fee, free valuation, and free legal work.

Keir Fraser, lead manager at TMW, explained: “These latest rate reductions and new products, including one year fixed and two-year tracker options with a 1% fee, are designed to give landlords greater flexibility and choice in a changing market.”

What this means for landlords

These recent rate cuts and product launches provide landlords with more competitive borrowing options amid a challenging financial environment. The availability of products with varying fixed terms, fees, and features such as cashback and free valuations offers landlords greater flexibility to tailor mortgages to their specific needs.

For landlords looking to refinance or purchase additional properties, the return of products like Foundation’s ERC3 fixed rate and TMW’s new one-year fixed options may offer a balance between cost and early repayment flexibility. Additionally, incentives such as cashback and free energy audits add value beyond just interest rate reductions.

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/