Major lender changes Buy To Let loan criteria for landlords

Major lender changes Buy To Let loan criteria for landlords

Skipton International has updated its buy to let mortgage criteria, increasing maximum loan-to-value for limited company borrowers and lowering minimum loan sizes. These changes affect landlords using limited companies for property investment.

Skipton International announced revisions to its UK buy to let lending criteria on 21 October 2026. The lender has increased the maximum loan-to-value (LTV) for Limited Company (SPV) mortgages to 75%, up from previous limits. Additionally, it has reduced the minimum loan size to £100,000 across both its UK buy to let and limited company lending ranges.

This move is designed to provide brokers and landlords with greater flexibility and more borrowing options, particularly for those purchasing or refinancing properties through limited companies. The lender emphasised the importance of limited company lending in the buy to let market and the need to adapt to increasingly varied borrowing requirements.

Details of Skipton International’s lending criteria changes

Skipton International’s decision to raise the maximum LTV to 75% for limited company mortgages means landlords can now borrow a higher proportion of the property value when using a special purpose vehicle (SPV). This is significant because many landlords prefer to hold rental properties within limited companies for tax and liability reasons.

Lowering the minimum loan size to £100,000 across both personal and limited company buy to let products broadens access for landlords with smaller portfolios or those investing in lower-value properties. Previously, minimum loan sizes were higher, potentially excluding some landlords from borrowing with Skipton International.

A spokesperson for Skipton International stated that these changes aim to give brokers more options to meet their clients’ needs. The lender recognises that buy to let borrowers increasingly have diverse requirements, and evolving lending criteria is necessary to remain competitive and supportive of the sector.

Context of lending criteria changes in the buy to let market

Buy to let lending has faced numerous challenges in recent years, including regulatory changes, tax reforms, and economic uncertainty. Many lenders have tightened criteria, especially for limited company borrowers, due to perceived risks and regulatory pressures.

However, limited company buy to let lending remains a crucial segment of the market. Landlords often use limited companies to benefit from different tax treatment, including corporation tax rates on profits and the ability to retain earnings within the company. The ability to borrow at higher LTVs within an SPV structure can make investment more viable and attractive.

Lowering minimum loan sizes also reflects the growing diversity of landlords, including those with smaller portfolios or investing in regional markets where property values are lower. This change may encourage more landlords to consider limited company structures or refinance existing holdings.

Practical implications for landlords and letting agents

For landlords, these revised criteria mean potentially easier access to finance when purchasing or refinancing buy to let properties through limited companies. The higher LTV can reduce the amount of upfront capital required, improving cash flow and investment flexibility.

Letting agents working with landlords should note these changes as they may influence client borrowing strategies and the types of properties landlords can afford. Agents can advise landlords on the benefits of limited company ownership and the improved borrowing options now available.

Smaller portfolio landlords or those entering the market may find it more feasible to secure buy to let finance with Skipton International due to the lower minimum loan size. This could stimulate activity in lower-value property segments and regional markets.

Remaining uncertainties and considerations

While Skipton International’s changes are positive for many landlords, the wider lending environment remains complex. Other lenders may maintain stricter criteria, and economic or regulatory developments could affect availability and terms.

Landlords should continue to monitor lending market trends and seek professional mortgage advice tailored to their circumstances. It is also important to stay updated on any changes to tax or regulatory frameworks that impact buy to let investment and company structures.

Official guidance from lenders and brokers should be consulted before making borrowing decisions, as criteria and product availability can vary and may change over time.

What landlords should consider now

• Review current mortgage arrangements and consider if refinancing through a limited company with higher LTV is beneficial.
• Consult mortgage brokers to explore options under the new Skipton International criteria and compare with other lenders.
• Assess the suitability of holding properties in a limited company, factoring in tax, liability, and borrowing implications.
• Keep records of all mortgage offers and communications to support compliance and future financial planning.
• Stay informed about ongoing regulatory and market changes affecting buy to let lending.

Supporting landlords with evolving lending criteria

Membership of The Landlord Association (TLA) offers access to practical compliance resources and support for landlords adapting to changes in the buy to let market. TLA’s developing property management platform, ORBIT, currently in BETA testing, aims to help landlords organise portfolios, manage documentation, and keep records of mortgage and borrowing arrangements.

ORBIT’s tools for recording key actions and storing compliance information can assist landlords in maintaining evidence of due diligence when refinancing or purchasing properties. TLA membership also provides updates on lending market developments and guidance to help landlords navigate evolving financial and regulatory requirements.

Explore TLA membership and learn more about ORBIT BETA access to support your buy to let investment strategy amid changing lending criteria.

Looking ahead, landlords should continue to monitor lender policies and market conditions, as further adjustments to buy to let finance criteria may occur in response to economic trends and government policy.

Sources: Landlord Today