Four lenders cut buy to let mortgage rates

Several prominent lenders have recently reduced their buy-to-let (BTL) mortgage rates, offering landlords more competitive financing options amid a fluctuating market. These adjustments, which include cuts of up to 30 basis points across various mortgage products, are significant for landlords and letting agents seeking to manage borrowing costs and investment strategies effectively.

Notable Rate Reductions from Key Lenders

Among the lenders making headline reductions, Molo has implemented the most substantial cuts, lowering its standard UK resident buy-to-let mortgage rates by 10 basis points. This adjustment brings two-year fixed rates down to 2.95% at 75% loan-to-value (LTV), with five-year fixed options starting at 4.65%. Additionally, Molo’s specialist mortgage range, which caters to portfolio landlords, investor-led applications, and holiday lets, has seen reductions of 15 basis points, with two-year fixes beginning at 3.01% and five-year fixes from 4.69%.

Other lenders following suit include The Mortgage Lender (TML), Landbay, and Fleet Mortgages, each introducing rate cuts or limited-edition products tailored to landlord needs. These changes reflect a broader trend of lenders responding to market conditions and landlord demand for more affordable borrowing options.

Molo’s Expanded Buy-to-Let Offerings

Molo’s recent rate reductions extend beyond standard buy-to-let products. The lender has introduced a new two-year fixed semi-commercial mortgage starting at 5.65% at 75% LTV, alongside cuts of up to 30 basis points on five-year semi-commercial rates, now available from 6.25%. These products are accessible to both individual and limited company borrowers, with no additional pricing applied to larger properties containing six or more rooms or units.

Martin Sims, Molo’s distribution director, noted the sustained strength in landlord demand, particularly from portfolio landlords seeking to remortgage or restructure their holdings. He also highlighted the growing interest in semi-commercial properties as investors aim to diversify their income streams, signalling evolving opportunities within the buy-to-let sector.

The Mortgage Lender’s Limited-Edition Products and Rate Cuts

The Mortgage Lender, part of the Shawbrook Group, has introduced limited-edition buy-to-let mortgage products alongside rate reductions of up to 0.15 percentage points across its fixed-rate range. Notably, its new two-year fixed rates start at 3.79%, with options available that include either a 5% completion fee or a fixed completion fee, providing flexibility for borrowers.

In addition to these limited-edition offerings, TML has reduced rates across its broader two-year and five-year fixed mortgage products, including those designed for houses in multiple occupation (HMOs) and borrowers taking multiple loans. Louise Apollonio, TML’s sales and distribution director, emphasised the lender’s commitment to supporting landlords throughout their investment journey by enhancing product availability and pricing.

Landbay’s Competitive Core and Specialist Mortgage Ranges

Landbay has also lowered its buy-to-let mortgage rates by up to 20 basis points across both its Core and Specialist ranges. The Core range, suitable for standard properties owned by individuals, limited companies, or limited liability partnerships, supports landlords with portfolios of any size and includes automated valuation model (AVM) options.

Five-year fixed Core mortgages at 75% LTV now start at 4.74%, reflecting a 20 basis point reduction, while two-year fixed Core rates have similarly decreased to begin at 3.99%. Landbay’s Specialist range, which covers holiday lets, HMOs, multi-unit freehold blocks (MUFBs), and trading companies, benefits from these adjustments as well. Rob Stanton, Landbay’s sales and distribution director, highlighted that these changes provide brokers with more competitive pricing across diverse landlord scenarios, from straightforward buy-to-let cases to more specialist borrowing needs.

Fleet Mortgages’ Rate Adjustments for Fixed Products

Fleet Mortgages has reduced rates on several two-year and five-year fixed mortgage products at 75% LTV. The lender cut its two-year fixed rates for HMOs and MUFBs by 20 basis points on products with a 3% fee, bringing the standard HMO and MUFB rate down from 4.79% to 4.59%. For properties with an Energy Performance Certificate (EPC) rating of A to C, rates have fallen from 4.69% to 4.49%.

All five-year fixed rates at up to 75% LTV, including EPC-linked options, have been reduced by 10 basis points. Steve Cox, Fleet’s chief commercial officer, attributed these reductions to an improved funding environment and reaffirmed the lender’s focus on providing advisers and landlord clients with competitively priced buy-to-let mortgage options tailored to various property types and borrower circumstances.

What this means for landlords

These recent mortgage rate reductions offer landlords an opportunity to review their current financing arrangements and potentially reduce borrowing costs. Landlords with existing buy-to-let mortgages may consider remortgaging to take advantage of lower rates, particularly those with portfolios looking to restructure or expand. However, it is important to assess any associated fees, terms, and eligibility criteria before proceeding.

Letting agents and property managers should be aware of these changes to advise their landlord clients effectively. Understanding the nuances of specialist and semi-commercial mortgage products can help in guiding landlords towards suitable financing options that align with their investment goals and property types. Additionally, landlords should remain mindful of broader market conditions and regulatory requirements, including compliance with the Renters’ Rights Act and other relevant legislation.

What TLA members should consider

• Review current buy-to-let mortgage arrangements to identify opportunities for cost savings through remortgaging or switching products.
• Evaluate the suitability of specialist and semi-commercial mortgage products for portfolio diversification or unique property types such as HMOs and holiday lets.
• Consult with mortgage advisers or brokers to understand the implications of product fees, completion fees, and loan-to-value thresholds on overall borrowing costs.
• Stay informed about changes in lending criteria and market conditions that may affect mortgage availability and affordability.
• Ensure ongoing compliance with landlord obligations under housing legislation, including any updates related to the Renters’ Rights Act 2026.
• Utilise TLA resources and training to enhance knowledge of mortgage options and landlord compliance requirements.

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/