Landbay, Kensington and Dudley cut landlord BTL mortgage rates

Several UK mortgage lenders have recently announced reductions in buy-to-let (BTL) mortgage rates, offering landlords more competitive borrowing options. Landbay, Kensington Mortgages, and Dudley Building Society have all cut their rates across various product ranges, including standard residential, Houses in Multiple Occupation (HMOs), limited company, and expat landlord mortgages. These changes could influence landlords’ decisions on purchasing, refinancing, or reviewing existing mortgage arrangements.

Landbay’s Adjustments to Premier Range Buy-to-Let Products

Landbay has implemented a second round of rate reductions in June, trimming up to 17 basis points (bps) from its Premier range of BTL mortgage products. This adjustment affects five-year fixed-rate deals for both purchases and remortgages, with options at 75% loan-to-value (LTV) now starting at 4.45%. The Premier range caters to landlords owning up to 15 mortgaged properties and is accessible to both individual landlords and limited companies.

In addition to purchase products, Landbay’s five-year fixed remortgage deals with free valuations now start at 4.49% at 75% LTV. There are also options featuring fixed fees, free valuations, assisted legal services, and cashback incentives beginning at 5.39%. Small HMO rates have been reduced to 4.84%, and product transfers for existing customers now start at 4.54%. The Premier products offer a flexible fee structure, ranging from zero to 5%, allowing landlords to select options that best suit their financial planning.

Kensington Mortgages’ Rate Reductions Across Multiple Product Lines

Kensington Mortgages has cut selected BTL mortgage rates by up to 25bps across its Prime, Prime eKo, Core, HMO, and multi-unit block (MUB) product ranges. These reductions apply at both 75% and 80% LTV, providing landlords with a broader selection of competitive rates. For example, two-year fixed rates at 75% LTV in the Prime range now start at 3.49% with a 5% fee, while alternative fee structures offer rates of 4.14% with a 3% fee or 5.63% with no fee.

Five-year fixed Prime deals at 75% LTV begin at 4.59% with a 5% fee, with other options priced between 4.82% and 5.34% depending on the fee level. Kensington’s Prime HMO and MUB products, available throughout England, Scotland, and Wales, have also seen rate reductions. Five-year fixed rates at 75% LTV for these specialist products now include options at 4.84% with a 5% fee and 5.09% with a 3% fee. Additionally, the Prime eKo range, which targets energy-efficient properties with EPC ratings of A, B, or C, is priced 5bps below the equivalent standard Prime rates. Free valuations continue to be offered across Kensington’s residential and BTL mortgage products.

Dudley Building Society’s Significant Rate Cuts for Buy-to-Let and Expat Mortgages

Dudley Building Society has made notable reductions of up to 110bps on its BTL and expat mortgage products. These cuts affect purchase and remortgage transactions, including two- and five-year fixed deals, discounted products, residential interest-only mortgages, and selected landlord-specific offerings. For instance, a two-year residential expat mortgage at 75% LTV has been reduced from 6.30% to 5.38%, while the five-year BTL fixed rate at 80% LTV has dropped from 6.40% to 5.63%.

The five-year expat BTL product at 70% LTV is now available at 5.68%, down from 6.30%. These reductions enhance Dudley’s competitive positioning and provide brokers and landlords with more attractive financing options across a range of client needs. The lender emphasises that these changes support a wide variety of residential, BTL, and expat mortgage requirements.

Range of Products and Eligibility Considerations

The lenders’ revised offerings cover a broad spectrum of landlord needs, including standard buy-to-let properties, HMOs, multi-unit freehold blocks, holiday lets, and trading companies. Landbay’s core mortgages are available to individuals, limited companies, and limited liability partnerships without restrictions on portfolio size, which may appeal to landlords with larger property holdings. Kensington’s product range similarly spans standard residential investments to more complex HMO and MUB arrangements, with specific products designed to encourage energy efficiency through the Prime eKo range.

Landlords should note that eligibility criteria, fees, and valuation requirements vary between lenders and product types. Free valuations remain a feature for many products, which can reduce upfront costs. However, fees ranging from zero to 5% are common, and landlords should carefully assess the total cost of borrowing, including any associated legal and administrative fees, when considering these mortgage products.

What This Means for Landlords

The recent mortgage rate reductions from Landbay, Kensington, and Dudley Building Society present landlords with opportunities to secure more favourable financing terms. Those considering purchasing additional rental properties, refinancing existing mortgages, or transferring products may benefit from these lower rates, potentially improving cash flow and investment returns. However, landlords should carefully evaluate the terms and conditions of each product, including fees, loan-to-value limits, and eligibility requirements.

Given the variety of products and fee structures, landlords may find it beneficial to consult with mortgage brokers or financial advisors to identify the most suitable options for their specific circumstances. Additionally, landlords with portfolios including HMOs, multi-unit blocks, or expat lettings should pay particular attention to specialist products designed for these sectors, as these may offer tailored benefits and competitive rates.

What TLA Members Should Consider

• Review current mortgage arrangements to determine if refinancing or product transfers could reduce borrowing costs in light of recent rate cuts.
• Assess eligibility for specialist buy-to-let products, such as those for HMOs, multi-unit blocks, or expat landlords, to take advantage of targeted rate reductions.
• Consider the impact of fees and valuation costs on overall mortgage affordability, not just headline interest rates.
• Consult with mortgage brokers or financial professionals to explore the full range of available products and identify the best fit for individual portfolio needs.
• Stay informed about lender criteria and product availability, as these can change frequently and affect borrowing options.
• Ensure compliance with relevant landlord obligations and regulatory requirements when expanding or refinancing rental property portfolios.

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TLA update

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