Buy-to-Let Mortgage Rates Cut by Pepper Money and Other UK Lenders

Summary: Pepper Money has reduced its buy-to-let mortgage rates by 0.50% across key loan-to-value tiers, offering landlords more competitive options for remortgaging. Other lenders, including Somo and NatWest, are also introducing flexible products and rate reductions, reflecting ongoing refinancing activity and market pressures faced by UK landlords.

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Pepper Money Reduces Buy-to-Let Rates Across Multiple LTVs

Pepper Money has announced a 0.50% reduction in its buy-to-let (BTL) mortgage rates across the 70%, 75%, and 80% loan-to-value (LTV) bands. This adjustment applies to both the Pepper 48 and Pepper 36 product ranges, including Houses in Multiple Occupation (HMOs), and covers two- and five-year fixed terms.

The lowest available rate is now 3.94% on the Pepper 48 Light five-year fixed product at 70% LTV. Rate cuts have been applied consistently across core tiers within the Pepper 48 Light and Pepper 36 Light products, with equivalent reductions for HMO products at 70% and 75% LTV.

Implications for Landlords Remortgaging

Following these changes, landlords looking to remortgage can access five-year fixed rates starting at 3.94% for 70% LTV, 4.09% at 75% LTV, and 4.84% at 80% LTV under the Pepper 48 Light product. The Pepper 36 Light equivalents stand at 4.14%, 4.29%, and 4.99% respectively. For HMOs, five-year fixed rates begin at 4.14% at 70% LTV under Pepper 48 Light and 4.34% under Pepper 36 Light.

Additionally, all single dwelling buy-to-let remortgages with Pepper Money include a £350 cashback on completion, providing further financial incentive for landlords to review their mortgage arrangements.

Paul Adams, Pepper Money’s sales director, commented: “We’re seeing continued momentum in the remortgage space, and landlords are actively reviewing their funding as fixed rates mature.” This highlights the ongoing activity among landlords seeking to secure better terms amid evolving market conditions.

Somo’s Breathing Space Loan Gains Popularity

Another lender, Somo, has reported strong interest in its newly launched landlord Breathing Space Loan, introduced last month. The product offers up to 24 months without monthly payments while providing rapid access to capital.

Most applications have come from landlords facing immediate refinancing pressures, with others seeking funds for compliance work, refurbishment, or arrears support. Jade Keval, Somo’s sales director, noted: “The level of interest has been exceptional, and it tells a powerful story about what’s happening in the rental market. Landlords aren’t rushing for the exits, they’re looking for time and flexibility while they adjust to reform, refinancing pressure and higher costs.”

NatWest’s Competitive Buy-to-Let Offer

NatWest has also been recognised with a Moneyfactscompare.co.uk Pick of the Week following reductions on selected fixed-rate buy-to-let mortgages. A highlighted deal includes a five-year fixed mortgage at 60% LTV priced at 3.99% until 31 May 2031, with a £995 product fee and free valuation incentive.

Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “On assessment, the move strengthens its appeal and earns an Outstanding Moneyfacts product rating.” This product is available for house purchase customers across Great Britain and Northern Ireland, offers overpayment flexibility, and is distributed as an online exclusive.

What This Means for UK Landlords

The recent rate reductions and new product launches reflect a market where landlords are actively managing refinancing as fixed mortgage terms mature. With rising costs and regulatory reforms impacting the sector, lenders are responding by offering more competitive rates and flexible options to retain and support landlords.

Landlords considering remortgaging or seeking short-term financial relief may find these developments beneficial. The availability of cashback incentives and flexible payment terms can help ease the financial pressures associated with property investment and management.

Suggested internal link anchors

• buy to let mortgage rates
• loan-to-value tiers
• Houses in Multiple Occupation (HMOs)
• fixed-term mortgage products
• landlord remortgaging
• mortgage cashback offers
• refinancing pressure
• rental market reforms
• buy to let compliance works
• mortgage overpayment flexibility

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/