Buy to let lenders cut mortgage rates and launch new products

Several buy-to-let lenders have recently announced reductions in mortgage rates and introduced new products aimed at landlords. These changes include lower fixed rates, free valuations, and products designed to reduce upfront costs, reflecting a competitive market environment for buy-to-let finance.

Foundation launches limited edition buy-to-let products

Foundation, a specialist lender operating exclusively through intermediaries, has introduced two Limited Edition buy-to-let mortgage products at 75% loan-to-value. These two-year fixed-rate deals form part of its F1 range, which targets landlords with a near-clean credit history.

The standard Limited Edition product is priced at 4.44%, while a green variant, available for properties with an EPC rating between A and C, is offered at a slightly lower rate of 4.34%. Both products carry a 4% fee but benefit from a free standard valuation and no application fee, helping to reduce the initial costs for borrowers.

Grant Hendry, Foundation’s director of sales, emphasised the importance of overall cost and product flexibility for landlords. He stated, “While rate remains an important consideration, landlords are also increasingly focused on overall costs and product flexibility. By offering a free standard valuation and removing application fees, these products can help reduce upfront expenditure while delivering highly competitive pricing.”

Kensington Mortgages reduces rates and offers free valuations

Kensington Mortgages has cut rates across its entire buy-to-let range and introduced free valuations. In its BTL Core range, which includes mortgages for Houses in Multiple Occupation (HMOs) and Multi-Unit Blocks (MUBs), rates have been reduced by up to 0.35%. These products are available up to 80% loan-to-value, with two-year fixed rates starting from 3.69% and five-year fixed rates from 5.12%.

The BTL Prime range, also covering HMOs and MUBs, has seen similar reductions of up to 0.35%. These mortgages are offered up to 75% loan-to-value, with two-year fixed rates from 3.59% and five-year fixed rates from 4.79%.

Andy Bickers, Kensington’s commercial director, highlighted the lender’s commitment to supporting brokers in a fast-moving market. He said, “In a fast-moving market, brokers need certainty, speed, and strong support from lenders. That’s why we continue to provide two days’ notice on product changes, alongside continuous access to support through our BDM team, telephone BDMs, and webchat services.”

Coventry for intermediaries cuts selected buy-to-let rates

Coventry for intermediaries, the intermediary arm of Coventry Building Society, has reduced rates on selected buy-to-let products by up to 10 basis points. This move aims to provide more competitive options for brokers and landlords.

Jonathon Stinton, head of intermediary relationships at Coventry, commented, “These reductions bring yet more competitive options to brokers.”

NatWest offers Best Buy buy-to-let mortgage

NatWest has lowered fixed rates for landlords by up to 0.18%, securing Moneyfactscompare.co.uk’s Pick of the Week recognition. Its five-year fixed-rate buy-to-let mortgage at 75% loan-to-value has been cut by 0.10% to 5.08%. This product is fixed until 31 August 2031, carries a £995 fee, and is available for house purchase customers.

The mortgage includes a free valuation, allows overpayments, and is offered as an online exclusive across Great Britain and Northern Ireland.

Caitlyn Eastell, a personal finance analyst at Moneyfactscompare.co.uk, said, “The latest change from NatWest sees it reduce its fixed rates for landlords by up to 0.18%. The cut in rate is enough to see the deal sit among the best in its sector and become a Moneyfacts Best Buy, as well as earn an Excellent product rating.”

What this means for landlords

These recent updates from key buy-to-let lenders demonstrate a trend towards more competitive pricing and improved product features, such as free valuations and reduced fees. For landlords, this could mean lower borrowing costs and reduced upfront expenses, making it more affordable to finance property investments or remortgage existing buy-to-let portfolios.

Additionally, the introduction of green mortgage options by Foundation reflects growing recognition of energy efficiency in the rental sector. Landlords with properties rated EPC A to C may benefit from preferential rates, encouraging investment in more sustainable housing.

Overall, these changes suggest that lenders are responding to market conditions and landlord needs by offering more flexible and cost-effective mortgage solutions, which could support continued activity in the buy-to-let 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/