More landlord lenders cut their buy to let mortgage rates

Several landlord lenders have recently reduced their buy-to-let mortgage rates, offering more competitive options for property investors. Paragon Bank, Landbay, Shawbrook, Coventry for intermediaries, and Accord Mortgages have all announced rate cuts and product enhancements across various buy-to-let mortgage ranges.

Paragon Bank expands tracker range

Paragon Bank has broadened its buy-to-let (BTL) Bank Base Rate tracker range by introducing new two-year options and a product with a 2% fee. These deals are available up to 75% loan-to-value (LTV) and apply to single self-contained properties, houses in multiple occupation (HMOs), and multi-unit blocks.

For single properties at 75% LTV, the two-year tracker starts at Bank Base Rate plus 1% (currently 4.75%) with a 2% product fee. This includes a free mortgage valuation, no application fee, and no early repayment charges. For HMOs and multi-unit blocks at the same LTV, rates start at Bank Base Rate plus 1.35%, also with a 2% fee and similar benefits.

James Harrison, Paragon’s product manager, highlighted that the expanded range now offers 14 options for new customers, alongside six switch and four further advance products, providing brokers with greater flexibility to match client priorities.

Landbay reduces rates across Premier range

Landbay has cut rates by 0.05% (5 basis points) on 18 Premier products, which include five-year fixed rate deals up to 75% LTV for purchases and remortgages. The Premier range caters to standard and HMO borrowers with up to 15 mortgaged properties, available to both individual and limited company landlords.

Five-year fixes now include a zero-fee option at 5.4% and a 5% fee option at 4.4%. Variable fee options remain available, ranging from zero or 1% up to 5%. Rob Stanton, Landbay’s sales and distribution director, noted that the current market conditions have enabled further rate reductions following recent product launches.

Shawbrook increases commercial bridging loan LTV

Shawbrook has raised the maximum LTV on eligible commercial bridging loans to 75%, aimed at brokers assisting clients purchasing or refurbishing commercial properties requiring higher funding levels. This follows previous enhancements, including day-one LTVs up to 90% for refurbishment projects, reduced monthly pricing, and a lower minimum loan size.

Daryl Norkett, Shawbrook’s director of real estate proposition, stated that the increased LTV offers brokers greater flexibility to support commercial property investors and developers needing higher leverage.

Coventry cuts selected buy-to-let rates

Coventry for intermediaries has reduced rates on selected buy-to-let and limited company products. Notably, its Limited Company BTL EPC five-year fixed rate to 31 December 2031 at 75% LTV with no fee has been lowered by 11 basis points to 5.29%. The BTL purchase five-year fixed rate at 75% LTV with no fee has also been cut by 8 basis points to 4.98%.

Jonathon Stinton, head of intermediary relationships at Coventry, emphasised that these reductions enhance broker and landlord choice, including improved options for professional landlords through limited company products.

Accord Mortgages improves buy-to-let competitiveness

Accord Mortgages has reduced rates across its buy-to-let range by 0.08%, applying to all five-year fixes up to 75% LTV. The product end dates have been extended to 31 October, while two- and three-year rates remain unchanged.

Examples include a five-year fixed rate of 4.87% (down from 4.95%) for house purchasers at 75% LTV with a £995 fee, and a 4.90% rate (down from 4.98%) for remortgage borrowers at the same LTV, which includes a remortgage legal service. Jeremy Duncombe, managing director of Accord Mortgages, expressed satisfaction in enhancing the competitiveness of their buy-to-let range for brokers and landlords.

Practical implications for landlords and brokers

These rate reductions and product enhancements provide landlords and property investors with more attractive financing options, particularly for those seeking fixed-rate deals or higher loan-to-value borrowing. Brokers can leverage the expanded range of products and fee structures to better tailor mortgage solutions to client needs, whether prioritising upfront costs or long-term interest rates.

Landlords should review their current mortgage arrangements and consider whether remortgaging or switching products could yield financial benefits in the current market environment.

Supporting landlords through changing mortgage options

With the evolving buy-to-let mortgage market, landlords face the challenge of staying informed and managing their portfolios effectively. TLA membership offers access to practical compliance resources and guidance that can assist landlords in reviewing their mortgage and property documentation to ensure they remain up to date with lender requirements and market changes.

TLA is currently BETA testing ORBIT™, its new property management and compliance platform designed to help landlords organise their properties, manage key documents, and keep track of compliance activity in one place. This platform aims to support landlords and letting agents in navigating the complexities of property finance and regulatory obligations.

Members can explore how TLA’s resources and ORBIT™ BETA access may help them respond effectively to changing mortgage products and maintain organised, compliant portfolios.