Enhanced criteria and lower rates aim to boost BTL accessibility

Several mortgage lenders have announced changes to their buy-to-let mortgage offerings, aiming to provide more options and improve accessibility for a wider range of borrowers.
Shawbrook Retail Mortgages has enhanced The Mortgage Lender’s (TML’s) residential and BTL propositions. The lender has expanded eligibility for non-UK nationals who do not yet have Indefinite Leave to Remain but have shown stability through UK residency and employment.
Applicants working in the UK on a Skilled Worker or Health and Care Visa may now qualify for a mortgage with TML, provided they meet certain criteria. Eligible borrowers may access up to 90% loan-to-value (LTV) for residential mortgages and 75% LTV for BTL, subject to a minimum of one year’s UK residency, a valid UK work visa with at least six months remaining, and a minimum income of £50,000.
TML has also broadened its BTL criteria to support landlords letting out properties they have previously lived in or inherited.
“These changes reflect our ongoing mission to provide more opportunities for customers who are often underserved by traditional criteria,” said Steve Griffiths (pictured left), commercial director for retail mortgages at Shawbrook. “By broadening our approach to include skilled workers and landlords in more nuanced circumstances, we’re helping to equip brokers with the options they need to support a wider range of client needs.”
Meanwhile, Paragon Bank has reduced rates across its 75% LTV two-year fixed rate BTL mortgage range by 11 basis points (bps), with rates now starting at 4.24%.
The new two-year fixed-rate BTL products are available at up to 75% LTV with either a nil or 3% product fee. Rates start at 4.24% for Single Self-Contained (SSC) properties with EPC ratings of ‘A’ to ‘C’, increasing by five basis points for homes rated ‘D’ and ‘E’. Loans are also available for landlords financing houses in multiple occupation (HMOs) and multi-unit blocks (MUBs), priced at 4.59% with a 3% product fee or 6.09% with nil product fee.
All products come with free mortgage valuations. SSC mortgages have no application fee, while HMO and MUB options carry a £299 application fee. Interest coverage ratios are calculated at the initial rate plus two percentage points, and the mortgages are available to landlords operating as individuals or through limited company structures in England, Scotland, and Wales.
“We’re reducing rates across our 75% LTV two-year fixed-rate product range, improving affordability for landlords," said Russell Anderson (pictured centre), commercial director of mortgages at Paragon Bank. “From speaking to brokers, we know that two-year deals are a popular option, with some landlords looking to fix now and then reassess the market and their businesses in two years’ time when rates are expected to be lower.
“The products are priced competitively and should appeal to experienced, larger landlords, as well as those with 15 or fewer properties who may be able to benefit from a significantly smoother application process, with fewer document requirements following the most recent process and systems enhancements we’ve made.”
Zephyr Homeloans has also announced rate reductions, cutting rates on its two-year mortgage products by 15 basis points and on its five-year mortgage products by 10 basis points.
The changes mean two-year fixed-rate standard mortgages up to 65% LTV are now available at 2.54% with a 7% fee. The same rate applies to new builds and flats above commercial properties, while HMOs and multi-unit freehold blocks are priced at 2.69% for two-year fixed rates up to 65% LTV, also with a 7% fee.
Five-year fixed rate standard mortgages up to 65% LTV are now 4.39% with a 7% fee, with the same rate for new builds and flats above commercial properties. HMOs and multi-unit freehold blocks are priced at 4.49% for five-year fixed rates up to 65% LTV, with a 7% fee.
“Following our recent repricing, we’re pleased to be able to reduce rates again to help our brokers to better support their landlord customers,” said Andy Rowe, head of sales at Zephyr Homeloans.
Zephyr’s fixed rate mortgage products are also available with a 0% or 3% fee option.
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