Buy-to-let lenders have introduced a fresh round of rate reductions and new mortgage products, offering landlords more competitive and flexible borrowing options across various loan-to-value (LTV) tiers. These changes reflect ongoing efforts by lenders to ease affordability pressures and cater to the diverse needs of buy-to-let investors.

Paragon Bank launches limited edition five-year fixed deals

Paragon Bank has unveiled six limited edition five-year fixed mortgage products available at 60% and 75% LTV, each carrying a 5% arrangement fee. The new offerings include three options at 75% LTV, complementing three deals previously launched at 60% LTV.

For properties with EPC ratings between A and C, rates start at 4.95% for single self-contained homes at 75% LTV, increasing by 0.05% for D or E-rated properties. Pricing for houses in multiple occupation (HMOs) and multi-unit blocks begins at 5.20%.

At 60% LTV, rates are lower, starting from 4.80% for stronger EPC-rated properties, with a slight increase for lower-rated stock. HMO and multi-unit block deals at this tier begin at 5.05%. Interest coverage ratios are calculated using the initial pay rate, and the products are available to landlords borrowing either in personal names or through limited companies.

James Harrison, Paragon’s product manager, commented: “We’ve seen a trend in landlords choosing higher fee products to secure a lower payrate. By cutting rates at 75% LTV and offering even better value at 60% LTV, we are aiming to ease affordability constraints for landlords and provide more flexibility in how borrowing costs are structured.”

Kensington Mortgages reduces rates across buy-to-let range

Kensington Mortgages has cut rates across its buy-to-let portfolio, including Prime, Core, and eKo products, with reductions of up to 0.20% on selected deals. These cuts apply to Core products up to 80% LTV and Prime deals up to 75% LTV, encompassing HMO and multi-unit block options.

Two-year fixed rates at 75% LTV for Prime products now stand at 5.73% with no fee, 5.39% with a £1,499 fee, and 4.34% with a 3% fee. Five-year Prime rates at the same LTV are 5.49% with no fee and 5.37% with a £1,499 fee. Within the eKo range, two-year fixes start at 5.68% with no fee, dropping to 4.29% with a 3% fee, while five-year products begin at 5.44%.

Kensington continues to offer free valuations across all buy-to-let products. Andy Bickers, the lender’s commercial director, said: “These latest rate reductions reflect ongoing commitment to supporting landlords with competitive, flexible options. By lowering rates across our Core, Prime and eKo ranges, we’re ensuring brokers and their clients have access to a broad selection of products that suit a variety of needs and property types.”

Molo introduces lower buy-to-let pricing

Molo has also reduced its buy-to-let mortgage rates, covering UK residents, non-UK residents, and expatriate borrowers. For UK landlords, two-year fixed rates now start from 2.98% at 55% LTV, with five-year options from 4.73%. Specialist lending products, including HMOs, multi-unit freehold blocks, new builds, and holiday lets, begin at 3.14% for two-year terms.

The lender has removed pricing premiums for larger HMOs, including properties with five or more units. Non-UK residents and expatriate borrowers can access rates starting from 4.78%. Martin Sims, Molo’s distribution director, stated: “Competitive pricing remains central to helping brokers deliver workable buy to let solutions. These reductions strengthen our proposition across both Standard and Specialist ranges, giving brokers more scope to deliver solutions that work on affordability and long-term yield.”

Landbay expands product range and cuts HMO rates

Landbay has added eight new five-year fixed products at 70% LTV within its Premier range, alongside rate reductions on smaller HMO deals. The new products include standard and remortgage Automated Valuation Model (AVM) options, with fees ranging from zero to 5%.

Rates start at 4.52% with a 5% fee, rising to 5.52% for no-fee deals. Two-year fixed rates for 75% LTV small HMO products have been cut by 0.15%, now beginning at 4.74% with a 3% fee. Product transfer equivalents start at 4.79%.

Rob Stanton, Landbay’s sales and distribution director, said: “The market continues to place a strong emphasis on value and certainty, particularly for landlords looking to secure longer-term fixed rates at lower LTVs. By introducing these new 70% LTV five-year fixes, we are giving brokers additional options to support that demand with a clear and flexible pricing structure.”

What this means for landlords

The recent wave of rate cuts and new product launches across multiple lenders offers landlords increased opportunities to secure more affordable and tailored mortgage deals. Lower rates at various LTV levels, especially for properties with stronger EPC ratings, can help improve affordability and cash flow for buy-to-let investors.

Additionally, the availability of products for HMOs, multi-unit blocks, and specialist property types reflects lenders’ recognition of the diverse nature of the rental market. Landlords can now benefit from greater flexibility in structuring borrowing costs, whether borrowing personally or through limited companies.

These developments may encourage landlords to review their existing mortgage arrangements, potentially refinancing to take advantage of improved rates and terms. Brokers and agents should be aware of the expanded product ranges and pricing adjustments to better advise their clients in a competitive lending environment.

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/