Improved flexibility supports both BTL investors and residential clients
Two lenders have rolled out updated criteria to better support landlords and residential borrowers in a changing property market.
Shawbrook has enhanced its lending criteria for serviced accommodation, responding to increased interest from professional landlords seeking to diversify their portfolios.
The lender’s internal data showed a 14% rise in landlord investments in multi-unit freehold blocks (MUFBs) throughout 2024, with momentum continuing into 2025.
The changes enable lending on portfolios and larger blocks of flats operated as serviced accommodation. Shawbrook’s criteria maintain loan amounts based on market rent under an Assured Shorthold Tenancy (AST), with up to 75% loan-to-value (LTV) available across its buy-to-let product range.
No additional evidence is required for portfolios with 10 or fewer units. For portfolios exceeding 10 units, Shawbrook requires either two years’ accounts for established assets or a cashflow forecast for new assets to assess nightly income.
“Throughout 2024, we saw a significant rise in landlords exploring investments in MUFBs, and this has continued into 2025 as more landlords seek to diversify their portfolios,” said Daryl Norkett (pictured left), director of real estate proposition at Shawbrook. “Our enhanced criteria for serviced accommodation lending reflect our dedication to support landlords as they adapt to market trends and explore new income streams, helping them unlock greater potential and long-term success in the rental market.”
Meanwhile, Vida Homeloans has updated its residential affordability assessment, allowing customers to borrow more when choosing shorter-term fixed rate products. The change is aimed at supporting a wider pool of borrowers, including first-time buyers, home movers, and remortgagors.
“Affordability continues to be one of the biggest barriers to home ownership, and at Vida, we’re committed to addressing it head-on,” said Ross Williams (pictured right), head of mortgage product management at Vida Homeloans. “Our mission is to help more people find a place to call home, and that means designing solutions that make a real difference.”
Under the new criteria, two applicants earning £25,000 each per year — with a £300 monthly loan repayment, over a 25-year term and no dependents — could now borrow an additional £17,200.
Vida has also launched a limited edition range of buy-to-let products at 75% LTV, available on five-year fixed terms. Fee options are 4% and 7%, with rates starting at 3.90%, aimed at giving landlords more flexibility and value.
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