Several buy to let lenders have launched new mortgage products and support measures aimed at helping landlords manage the financial pressures arising from recent government tax changes and market conditions. These initiatives offer more flexible borrowing options and improved affordability, which are particularly relevant as landlords face tighter margins and increased property income tax from April 2027.

Nottingham Building Society Responds to Tax Hike

Following the Autumn Budget announcement of a 2% increase in property income tax starting April 2027, Nottingham Building Society has introduced a refreshed range of buy to let mortgage products designed to ease affordability for landlords. The mutual lender has reduced its leading company landlord rate from 4.99% to 4.48%, although this comes alongside higher associated fees.

Personal name borrowing options from Nottingham are expected soon, with initial rates starting at 4.24%. These changes aim to provide landlords with greater flexibility and lower monthly payments, helping them to remain financially resilient amid rising costs and shrinking profit margins.

Nottingham continues to offer flat-fee and zero-fee mortgage alternatives, giving brokers a broader selection of structures to suit different investment strategies. Under updated affordability rules, landlords who pay fees upfront will need 10% less rental income to qualify, while those adding fees to the loan require 6% less rental income.

Matt Kingston, Nottingham’s sales director, commented: “By giving landlords more choice, lower monthly payments and greater flexibility, we’re helping them stay financially resilient at a time when margins are tighter than ever. These products are designed with landlords, tenants and the wider housing system in mind, offering practical support at a moment when the sector needs it most.”

Accord Mortgages Expands Top Slicing Options

Accord Mortgages has updated its lending criteria to make top slicing available to first-time landlords for the first time. This facility allows personal income to supplement rental income when assessing mortgage affordability, bridging the gap between rental earnings and the required mortgage amount.

Applicants who have not let a property for more than 12 months can now qualify if they have a household income of at least £75,000, excluding rental income. For experienced landlords, the minimum income requirement has been lowered from £50,000 to £40,000. The top slicing facility is available up to 75% loan-to-value, with joint applicants required to live in the same residential home.

Angelika Christian, Accord’s strategic partnerships and propositions manager, said: “This change allows us to provide greater flexibility to brokers and their landlord clients, providing new options for those – especially first-time landlords – who have surplus income they can use to borrow more, helping them to support the crucial private rental sector.”

Furness Building Society Reduces Rates

Furness Building Society has cut its five-year fixed rate mortgage at 80% loan-to-value to 4.84%, accompanied by a £995 product fee and £250 cashback. Remortgage customers benefit from a free valuation as part of the deal. This rate reduction has earned Furness an Outstanding Moneyfacts product rating, placing it among the best in its sector.

Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, noted: “The latest update from Furness Building Society includes a reduction to its five-year fixed rate mortgage at 80% loan-to-value. The deal is now priced at 4.84% and sits among the best in its sector.”

Implications for UK Landlords

These lender updates come at a critical time for UK landlords, who are navigating increased tax burdens and rising operational costs. The availability of more flexible mortgage products, including options that reduce required rental income thresholds and allow personal income to supplement affordability calculations, can help landlords maintain viable investment portfolios.

Landlords should consider how these new deals might fit their individual circumstances, particularly in light of the upcoming 2% property income tax increase in 2027. Engaging with brokers who understand these products could provide access to more tailored financing solutions that support long-term rental business sustainability.

Upcoming Support from The Landlord Association

Looking ahead, The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest to join the hub via the TLA website.