Three model houses with signs on which say: 'Buy me', 'For sale', 'Best deal'

Category: property market

There has been a surge of activity in the private rental sector (PRS) and the buy to let mortgage market. In this article, we count down six of the most encouraging updates we have seen.

1. Specialist lender cuts rates

One of the top specialist lenders has cut rates across 2- and 5-year fixed buy to let (BTL) products – with some being reduced by as much as 0.25% – across their limited company range. Many of these are available up to 75% loan to value (LTV) and offer free valuation.

These are some of the most competitive limited company buy to let rates they have recently reduced:

  • 3.99% (down by 0.15%) two-year fixed rate with a 3% fee. Up to 75% LTV, free valuation.
  • 5.09% (down by 0.25%) two-year fixed rate with a flat £1,495 fee. Up to 75% LTV, free valuation.
  • 5.59% (down by 0.20%) two-year fixed rate with no product fee. Up to 75% LTV, free valuation.

As for their standard BTL range for individual borrowers, here are some more compelling rate reductions:

  • 4.04% (down by 0.05%) two-year fixed rate with a flat £1,495 fee. Up to 65% LTV, free valuation.
  • 4.09% (down by 0.15%) two-year fixed rate with a flat £1,495 fee. Up to 75% LTV, free valuation.
  • 4.44% (down by 0.05%) five-year fixed rate with no product fee. Up to 75% LTV.

2. New 85% loan to value product released

Products that offer low deposits can be very appealing to some mortgage borrowers, especially those that see high upfront costs as an affordability barrier, but these kinds of deals can be difficult to come by. 

However, another specialist lender has sought to rectify this gap in the market by releasing a BTL product available up to 85% LTV:

  • 6.49% five-year fixed rate with no product fee. Minimum loan size of £100,000.

This has been marketed for both individuals and limited companies. The lender does not have minimum income requirements for applicants, which is another plus.

3. High street lender enters the buy to let arena

A nationally-known high street bank has entered a partnership with a noted specialist lender, breaking into the limited company BTL mortgage market for the first time and providing landlords with more compelling options.

It is understood that the high street lender will provide funding for a new range of specialist BTL products and these will be marketed under the brand of the lender they are working with.

This collaboration came with a statement acknowledging the crucial role landlords play in the overall housing sector.

4. Landlords investing

UK Finance has reported that the total number of buy to let mortgages is up 17% this year, compared to the same time in 2024, indicating that landlords are becoming more inclined to buy property.

This upward trend has also seen a 28% increase in loans for newly-bought rental properties, which should provide a needed boost to the sector.

5. Renters’ Rights Bill delayed

As we have recently reported, the Renters’ Rights Bill has been officially delayed. It is likely to be ascended into law by the end of 2025, but the reforms may not be fully implemented until 2026.

Some landlords were anxious that it would be hurried through the Houses of Parliament in July, before the MPs broke up for summer recess. However, the lack of debates scheduled for the bill made this impossible.

This delay gives landlords more time to prepare for the upcoming changes. Of note, the controversial section 21 ‘no-fault’ eviction ban will not be implemented for several more months, so landlords will still be able to issue these where necessary.

6. Base Rate cut

Last but not least, the Base Rate has been cut by 0.25 percentage points to 4%. 

This highly anticipated decision made by the Bank of England’s Monetary Policy Committee (MPC) could well explain the confident moves to lower rates and bring new products to the market by a range of lenders. 

Overall, the current landscape is looking more optimistic for landlords than some had expected. To explore the rates we have discussed in this article, get in touch with our specialist advisors today.