TMW, Accord, HSBC and Darlington cut buy to let mortgage rates

Several prominent lenders, including The Mortgage Works (TMW), Accord Mortgages, HSBC, and Darlington Building Society, have recently announced reductions in their buy-to-let (BTL) mortgage rates. These adjustments affect a broad range of landlord borrowers, including individual landlords, limited companies, let-to-buy investors, and those managing houses in multiple occupation (HMOs) or holiday let properties. The changes reflect ongoing shifts in the mortgage market and may influence borrowing costs and investment strategies for landlords across the UK.

Mortgage Works Introduces Multiple Rate Cuts Across BTL Products

The Mortgage Works has implemented a series of rate reductions across its buy-to-let mortgage portfolio, encompassing fixed-rate products with terms of one, two, and five years. The lender has lowered rates by up to 0.22 percentage points for both new and existing customers, covering various product types such as standard BTL, let-to-buy, HMOs, and limited company mortgages. Notably, the five-year fixed remortgage product at 65% loan-to-value (LTV) has been reduced to 4.22%, accompanied by a 3% fee, free valuation, and legal work, enhancing its appeal for landlords seeking longer-term financing stability.

Additional products have also seen adjustments, including a five-year fixed remortgage option with a £1,495 fee now priced at 4.69% for up to 65% LTV. Limited company borrowers benefit from a five-year fixed rate of 5.49% at up to 75% LTV with no associated fee, alongside two-year fixed switcher products with minor rate reductions. These changes mark the third round of rate cuts by TMW within the past month, signalling a competitive approach to supporting landlords’ financing needs.

Accord Mortgages Enhances Competitiveness with Rate Reductions

Accord Mortgages has also revised its buy-to-let mortgage rates downward, with reductions of up to 0.30 percentage points on two-year fixed products for landlords. Three-year fixed rates have been cut by as much as 0.25 percentage points, while five-year fixed rates have decreased by up to 0.22 percentage points. For example, a two-year fixed remortgage at 60% LTV is now available at 4.87%, down from 5.17%, with a £995 fee and inclusive of free standard valuation and remortgage legal services.

Similarly, a five-year fixed remortgage product at 75% LTV has been reduced to 4.87% from 5.09%, with a £3,495 fee and similar inclusions. Accord’s mortgage product manager highlighted the lender’s commitment to providing a broader range of competitive options for brokers and their clients, aiming to improve value and choice within the buy-to-let market.

HSBC’s Buy-to-Let Offering Recognised for Value

HSBC’s five-year fixed buy-to-let mortgage at 65% LTV has been named the “Pick of the Week” by Moneyfactscompare.co.uk, reflecting its competitive position in the market. Priced at 4.57% fixed until 31 July 2031, this product includes a £3,999 product fee and free valuation. It is available to second-time buyers and permits overpayments up to 20%, offering flexibility for landlords aiming to reduce interest costs over the term.

While the product fee is relatively high, the inclusion of a free valuation and the ability to make overpayments may offset some of the upfront costs for landlords. This recognition underscores HSBC’s strategic positioning within the buy-to-let mortgage sector and provides landlords with a notable option for longer-term financing.

Darlington Building Society Lowers Rates on BTL and Holiday Let Mortgages

Darlington Building Society has reduced rates by up to 0.20 percentage points across selected two- and five-year fixed-rate buy-to-let and holiday let mortgage products. The society’s standard two-year fixed BTL rate now stands at 5.49%, with the holiday let equivalent at 5.59%. These reductions apply immediately to both purchase and remortgage transactions, reflecting Darlington’s ongoing focus on competitive pricing.

Darlington’s lending criteria are notably flexible, with no minimum income requirement or maximum age limit, and support for first-time landlords. The society also considers remortgages of former residential properties converted to buy-to-let and accepts Airbnb lettings for holiday let applications. Borrowers can use the properties for personal use up to 90 days per year, offering additional versatility for landlords managing holiday lets.

What This Means for Landlords

These recent mortgage rate reductions present potential opportunities for landlords to secure more favourable financing terms, which could improve cash flow and investment returns. Landlords considering remortgaging or purchasing additional rental properties may find it beneficial to review these updated products, particularly if they fall within the specified LTV bands or product types such as limited company ownership or holiday lets.

However, landlords should carefully assess the total cost of borrowing, including product fees and any associated legal or valuation charges, alongside the interest rate reductions. The availability of free valuations and legal services with some products may provide added value. Additionally, features such as overpayment allowances can offer flexibility to reduce interest costs over time but require consideration of individual financial circumstances and investment goals.

What TLA Members Should Consider

• Review current mortgage arrangements and compare them against the newly reduced rates to identify potential savings or better product features.
• Consider the implications of product fees and additional costs alongside interest rates to evaluate the overall affordability of remortgage or purchase options.
• Assess eligibility criteria carefully, especially for limited company borrowers, let-to-buy investors, and those managing HMOs or holiday lets, to ensure product suitability.
• Consult with mortgage brokers or financial advisers to understand the full range of available products and any recent market developments affecting buy-to-let lending.
• Stay informed about lender criteria regarding personal use allowances and income requirements, particularly for holiday let properties, to ensure compliance and avoid future issues.
• Utilise TLA resources and training to remain up to date with mortgage market trends and landlord compliance obligations, supporting informed decision-making.

TLA Training Academy

The Landlord Association provides structured guidance, compliance education and practical support for landlords, letting agents and property professionals. Members can access training and resources designed to help them stay organised, informed and prepared.

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

Those looking to join and access member support can register here: https://landlordassociation.org.uk/get-started-with-the-landlord-association/

TLA update

The Landlord Association is continuing to expand its support, resources and partner network for landlords, tenants, agents and property professionals across the UK. Service providers interested in working with TLA can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/